A decrease in the money supply will shift the long-run aggregate-supply curve to the left.

Name: A decrease in the money supply will shift the long-run aggregate-supply curve to the left.
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Question

A decrease in the money supply will shift the long-run aggregate-supply curve to the left.​

Quizplus · Accepted Answer

The long-run aggregate-supply curve is determined by the economy's resources, technology, and institutions, not by the money supply. Changes in the money supply typically affect the aggregate demand curve instead.

A Decrease in the Money Supply Will Shift the Long-Run