equilibrium. The government of MankiwVille, in consultation with the country's central bank, subsequently announced in February that, with immediate effect, credit cards are considered illegal and may no longer be used when making purchases. The demand for money in MankiwVille has subsequentlyand the velocity of money If MankiwVille's central bank keeps the money supply constant, in the short run the price level will In the long run, the price level will Select one: a. increased; decreased; remain unchanged; decrease b. decreased; increased; remain unchanged; decrease c. decreased; increased; decrease; remain

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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equilibrium. The government of MankiwVille,
in consultation with the country's central bank,
subsequently announced in February that, with
immediate effect, credit cards are considered
illegal and may no longer be used when
making purchases. The demand for money in
MankiwVille has subsequentlyand the
velocity of money If MankiwVille's central
bank keeps the money supply constant, in the
short run the price level will In the long
run, the price level will
Select one:
a. increased; decreased; remain unchanged;
decrease
b. decreased; increased; remain unchanged;
decrease
c. decreased; increased; decrease; remain
Transcribed Image Text:equilibrium. The government of MankiwVille, in consultation with the country's central bank, subsequently announced in February that, with immediate effect, credit cards are considered illegal and may no longer be used when making purchases. The demand for money in MankiwVille has subsequentlyand the velocity of money If MankiwVille's central bank keeps the money supply constant, in the short run the price level will In the long run, the price level will Select one: a. increased; decreased; remain unchanged; decrease b. decreased; increased; remain unchanged; decrease c. decreased; increased; decrease; remain
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