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Which of the following outcomes is likely if a contractionary monetary policy is adopted?

dbomb1

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Which of the following outcomes is likely if a contractionary monetary policy is adopted?

Which of the following outcomes is likely if a contractionary monetary policy is adopted?

▸ The demand for labor will increase.

▸ Real wages will increase if nominal wages are fixed.

▸ The aggregate price level will rise.

▸ Real output will increase if nominal wages are fixed.

Textbook

Macroeconomics

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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culwri204

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