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When the central bank decreases the money supply Interest rates are unaffected, and AD does not move Interest rates fall, causing AD to shift to the right Interest rates rise, causing AD to shift to the left Interest rates rise, causing AD to shift to the right D Question 24 Central bank policies that are designed to lower inflation have an unfortunate side effect. What is it? These policies tend to lower unemployment These policies tend to raise unemployment These policies only operate in the long-run These policies have no effect on the real economy since money is a nominal variable D Question 25 If Real GDP equals $4,000, the money supply equals $1,000, and the velocity of money equals 4, then the price level equal O 1/2 01 04 16