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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.3
What is the result of a decrease in the money supply on the price level in the long run, assuming the velocity of money and real GDP remain constant?
The price level increases
The price level fluctuates unpredictably
The price level decreases
The price level remains constant
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AP Macroeconomics - 5.3 Money Growth and Inflation
Key terms
Money Supply
Price level
Real GDP
Velocity of Money
Long run
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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