A contractionary monetary policy or a contractionary fiscal policy.
A decrease in the money supply is most likely to result from a central bank raising interest rates. When interest rates increase, borrowing becomes more expensive, leading to a reduction in consumer spending and business investment. Additionally, higher rates can incentivize saving over spending, further contracting the money supply in circulation. Other actions, such as selling government securities, can also effectively decrease the money supply.
increase in demand and decrease in supply.
the prime rate
Aggregate supply is the supply of all goods and services within a country. Which of the following would most likely cause a decrease in the aggregate supply
a government subsidy
A decrease in the money supply is most likely to result from a central bank raising interest rates. When interest rates increase, borrowing becomes more expensive, leading to a reduction in consumer spending and business investment. Additionally, higher rates can incentivize saving over spending, further contracting the money supply in circulation. Other actions, such as selling government securities, can also effectively decrease the money supply.
increase in demand and decrease in supply.
Standardization
A general decrease in wages. - Apex
the prime rate
Aggregate supply is the supply of all goods and services within a country. Which of the following would most likely cause a decrease in the aggregate supply
A general decrease in wages. - Apex
a government subsidy
If the supply decrease and demand is constant, it will result into higher prices for the good. Ideally, this will automatically make the demand higher than market supply which creates scarcity.
A general decrease in wages. - Apex
When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.
The government sells a new batch of Treasury bonds.