Asked by Silvia Montañes Sintes on Jul 01, 2024
Verified
A decrease in the money supply will shift the long-run aggregate-supply curve to the left.
Money Supply
The total of all monetary assets within an economy at a specific instant, comprising cash, coins, and balances in checking and savings.
Long-Run Aggregate-Supply
is the total supply of goods and services that a country's economy can produce over time when all inputs are used to their full potential.
- Highlight the variations between short-duration and long-duration effects in the aggregate demand and aggregate supply model.
Verified Answer
NS
Nyesha SkinnerJul 06, 2024
Final Answer :
False
Explanation :
The long-run aggregate-supply curve is determined by the economy's resources, technology, and institutions, not by the money supply. Changes in the money supply typically affect the aggregate demand curve instead.
Learning Objectives
- Highlight the variations between short-duration and long-duration effects in the aggregate demand and aggregate supply model.
Related questions
Other Things the Same, What Happens to the Price Level ...
Which of the Following Is True When an Economy Is ...
The Figure Shows the Determination of the Equilibrium Price Level ...
The Figure Given Below Depicts Long Run Equilibrium in an ...
What Do Most Economists Believe Concerning the Relation Between the ...