Show the impact of a reduction in the money supply on the economy. You may assume that the economy begins in long-run equilibrium. Be sure to show that impact on output and the price level on both the short and the long run.
Show the impact of a reduction in the money supply on the economy. You may assume that the economy begins in long-run equilibrium. Be sure to show that impact on output and the price level on both the short and the long run.