Multiple Choice
What happens to the aggregate demand curve when the Fed reduces the money supply?
A) It shifts leftward, lowering real GDP and the price level.
B) It shifts leftward, raising real GDP and the price level.
C) It shifts leftward, lowering real GDP but raising the price level.
D) It shifts rightward, raising real GDP and the price level.
E) It shifts rightward, lowering real GDP but raising the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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