Producers' total revenue will decrease if A. The price rises and demand is inelastic. B. income increases and the good is a norm
1 answer:
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Answer:
1 and 2: Find attached of the graph
3. The correct answers are:
(a) Price level will fall.
b)The demand for money will fall
Explanation:
(1) A fall in money supply will shift the money supply curve leftward, increasing interest rate and quantity of money. See the first attachment for the graph.
(2) Lower money supply will decrease aggregate demand, shifting AD curve leftward, decreasing both price level and output. See the second attachment for the graph.
(3) The following will happen during transition:
- --(a) Price level will fall.
-- b)The demand for money will fall
