In the long run, a decrease in aggregate demand will lead to ...

[mrsjacobs44]

In the long run, a decrease in aggregate demand will lead to a(n):
 a. decrease in price and output levels.
 b. increase in price and output levels.
 c. increase in the price level and a decrease in output.
  d. decrease in the price level and an increase in output.
  e. decrease in the price level and no change in output.

Question 2

The ultimate effect of a reduction in the money supply is:
 a. a leftward shift of the aggregate demand curve.
 b. a rightward shift of the short-run aggregate supply curve.
 c. a movement upward along the aggregate demand curve.
 d. a movement downward along the aggregate demand curve.
 e. a movement upward along the short-run aggregate supply curve.

[shaikhs]

Answer to Question 1

e

Answer to Question 2

a

[mrsjacobs44]

Thanks for the timely response, appreciate it

[tkempin]

Excellent