The core ingredients of contractionary monetary policy are shown below. These events impact the real economy and occur as shown by the sequence on the right. Contractionary Monetary Policy For each of the events described below, insert the number (1 – 4) to give each event its correct position in the sequence. Labor demand shifts left 2 Long - term interest rates rise Short - term interest rates rise and credit access contracts 3 Demand for goods and services decreases 4

The core ingredients of contractionary monetary policy are shown below. These events impact the real economy and occur as shown by the sequence on the right. Contractionary Monetary Policy For each of the events described below, insert the number (1 – 4) to give each event its correct position in the sequence. Labor demand shifts left 2 Long - term interest rates rise Short - term interest rates rise and credit access contracts 3 Demand for goods and services decreases 4

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter27: Issues In Macroeconomic Theory And Policy

Section: Chapter Questions

Problem 4P

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