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 potential GDP could both decrease. OB. The price and real GDP could both increase. OC. The price and potential GDP could both increase. OD. The price and real GDP could both decrease. 27
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 potential GDP could both decrease. OB. The price and real GDP could both increase. OC. The price and potential GDP could both increase. OD. The price and real GDP could both decrease. 27
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter33: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 4CQQ
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