Question

Contractionary monetary policy causes _____ in the price level in the short run and _____ in the price level in the long run. a decrease; a decrease a decrease; no change no change; a decrease no change; no change

Answer 1

The answers to the blank lines in the problem mentioned above are both "a decrease" such as to complete the sentence we have "Contractionary monetary policy causes A DECREASE in the price level in the short-run and A DECREASE in the price level in the long run"