Multiple Choice
Starting from the natural level of output, an unexpected monetary contraction will cause output and the price level to ______ in the short run; and in the long run the expected price level will ______, causing the level of output to return to the natural level.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
Correct Answer:
Verified
Correct Answer:
Verified
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