Question
If the short-run aggregate supply curve is horizontal, and, if each member of the general public chooses to hold a larger fraction of his or
If the short-run aggregate supply curve is horizontal, and, if each member of the general public chooses to hold a larger fraction of his or her income as cash balances, then:
Group of answer choices
prices will increase in the short run.
prices will decrease in the short run.
output and employment will increase in the short run.
output and employment will decrease in the short run.
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
