An economy is in long-run equilibrium. If the central bank reduces the growth rate of the money supply, which of the following must occur in the long run?An economy is in long-run equilibrium. If the central bank reduces the growth rate of the money supply, which of the following must occur in the long run?

Responses

The rate of inflation will decrease.

The rate of inflation will decrease.

The unemployment rate will decrease.

The unemployment rate will decrease.

The long-run aggregate supply curve will shift to the left.

The long-run aggregate supply curve will shift to the left.

The production possibilities curve will shift to the left.

The production possibilities curve will shift to the left.

The long-run Phillips curve will shift to the left.