If the central bank decreases the money supply,then in the short run prices

Question

Quizplus · Accepted Answer

When the central bank reduces the money supply, there is less money available for businesses and consumers to spend. With less spending, demand for goods and services decreases, leading to a downward pressure on prices. This decrease in demand also leads to reduced business activity, leading to higher unemployment. Therefore, prices will fall and unemployment will rise.

If the Central Bank Decreases the Money Supply,then in the Short