In the short run, there is a positive relationship between:
a. inflation and unemployment.
b. inflation and real GDP.
c. the actual price level and the aggregate quantity supplied.
d. the actual price level and unemployment.
e. the actual price level and consumption spending.
Question 2
In the short run, a decrease in the money supply will lead to a(n):
a. decrease in Gross Domestic Product.
b. increase in the price level.
c. increase in aggregate demand.
d. increase in the demand for money.
e. decrease in the market interest rate.
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