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Figure 15-2 -In Figure 15-2,suppose the Economy Is Currently at an Equilibrium

Question 48

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Figure 15-2 Figure 15-2 -In Figure 15-2,suppose the economy is currently at an equilibrium at point C.Applying rational expectations theory,what will happen if the Bank of Canada announces that it is decreasing the money supply? A) the price level will increase B) real GDP per year will increase C) real GDP per year will decrease D) the price level will decrease
-In Figure 15-2,suppose the economy is currently at an equilibrium at point C.Applying rational expectations theory,what will happen if the Bank of Canada announces that it is decreasing the money supply?


A) the price level will increase
B) real GDP per year will increase
C) real GDP per year will decrease
D) the price level will decrease

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