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Suppose the bank of america reduces money

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Question

Suppose the Bank Of America reduces money supply by 5 percent.

a. What happens to aggregate demand curve

b. What happens to level of output and price level in the short run and in the long run

c. According to Okun's law what happens to unemployment in the short run and in the long run

d. What happens to the real interest rate in the short run and in the long run

Reference no: EM132335756

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