Starting from a Position of Macroeconomic Equilibrium at the Full-Employment

Multiple Choice

Starting from a position of macroeconomic equilibrium at the full-employment level of real GDP, in the short run, an unanticipated decrease in the money supply will:

A) ​raise real interest rates, lower the price level, and reduce real GDP.
B) ​raise real interest rates, lower the price level, and leave real GDP unchanged.
C) ​raise nominal interest rates, lower the price level, and leave real GDP unchanged.
D) ​lower real interest rates, raise the price level, and increase real GDP.