Question: At 1 2 : 0 0 midnight April 1 , 2 0 1 9 an error in the Federal Reserve main computer causes $ 1
At : midnight April an error in the Federal Reserve main computer causes $ to be withdrawn from every citizens' checking account, thereby decreasing the US consumers real wealth. Use the ADAS model to determine what happens to real GDP and the price level as a result. Assume an upward sloping AS curve, and assume the AS curve does not shift. a Real GDP increases and the price level increases. b Real GDP decreases and the price level decreases. c Real GDP increases, but the price level decreases. d Real GDP decreases, but the price level increases. e Real GDP may increase or decrease, but the price level unambiguously increases.
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