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The quantity theory of money assumes that real GDP is at potential GDP and does not change. If real GDP were initially above potential GDP and could change, what do you think would happen when the quantity of money decreases? ΘΑ The price and real GDP could both decrease OB. The price and potential GDP could both increase OC. The price and real GDP could both increase OD. The price and potential GDP could both decrease

The quantity theory of money assumes that real GDP is at potential GDP and does not change. If real GDP were initially above potential GDP and could change, what do you think would happen when the quantity of money decreases? ΘΑ The price and real GDP could both decrease OB. The price and potential GDP could both increase OC. The price and real GDP could both increase OD. The price and potential GDP could both decrease

Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Aggregate Demand And Aggregate Supply
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← The quantity theory of money assumes that real GDP is at potential GDP and does not change. If real GDP were initially above potential GDP and could change, what do you think would happen when the quantity of money decreases? ▲ OA. The price and real GDP could both decrease OB. The price and potential GDP could both increase OC. The price and real GDP could both increase OD. The price and potential GDP could both decrease
Transcribed Image Text:← The quantity theory of money assumes that real GDP is at potential GDP and does not change. If real GDP were initially above potential GDP and could change, what do you think would happen when the quantity of money decreases? ▲ OA. The price and real GDP could both decrease OB. The price and potential GDP could both increase OC. The price and real GDP could both increase OD. The price and potential GDP could both decrease
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