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    Principles of Macroeconomics
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    Exam 17: The Short-Run Tradeoff Between Inflation and Unemployment
  5. Question
    Suppose That the Bank of Canada Unexpectedly Decreases the Money
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Suppose That the Bank of Canada Unexpectedly Decreases the Money

Question 71

Question 71

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Suppose that the Bank of Canada unexpectedly decreases the money supply. What will happen to unemployment in the short run? What will happen to unemployment in the long run?

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In the short run, unemployment will rise...

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