To increase the self-esteem of dieters everywhere, powerful fashion designers lobby the government to redefine "five pounds" as "one pound."Under this system, what would have previously been five pounds of bananas will now be one pound of bananas and a 500-pound gorilla would now weigh only 100 pounds.

a.How much would someone who originally weighed 180 pounds now weigh as a result of this redefinition?

___________pounds

b. Has there been a nominal or real change in the person's weight?

• Nominal change
• Neither a nominal nor real change
• Both a nominal and real change
• Real change

c. How is this scenario similar to contractionary monetary policy viaa decrease in the money supply in the long run?

• The demand for pounds has increased.
• The supply of pounds has decreased.
• The demand for pounds has decreased.
• The supply of pounds has increased.