Which of the Following Explains Expansionary Monetary Policy in the Long

question 63

Multiple Choice

Which of the following explains expansionary monetary policy in the long run?

• A) Expansionary monetary policy shifts aggregate demand to the left,moving the economy from long-run equilibrium to a short-run equilibrium with a lower price level and a lower level of real gross domestic product (GDP).In the long run,as resource prices fall,the short-run aggregate supply curve shifts to the right,bringing the economy back to a long-run equilibrium where no real changes to GDP have occurred.
• B) Expansionary monetary policy shifts aggregate demand to the right,moving the economy from long-run equilibrium to a short-run equilibrium with a higher price level and a higher level of real gross domestic product (GDP).In the long run,as resource prices rise,the aggregate demand curve shifts back to the left,causing the economy to expand.
• C) Expansionary monetary policy shifts aggregate demand to the right,moving the economy from long-run equilibrium to a short-run equilibrium with a higher price level and a higher level of real gross domestic product (GDP).In the long run,as resource prices rise,the short-run aggregate supply curve shifts to the left,bringing the economy back to a long-run equilibrium where no real changes to GDP have occurred.
• D) Expansionary monetary policy shifts aggregate demand to the right,moving the economy from long-run equilibrium to a short-run equilibrium with a higher price level and a higher level of real gross domestic product (GDP).In the long run,as resource prices fall,the short-run aggregate supply curve shifts to the right as well,causing the economy to expand.
• E) Expansionary monetary policy shifts aggregate demand to the left,moving the economy from long-run equilibrium to a short-run equilibrium with a lower price level and a lower level of real gross domestic product (GDP).In the long run,as resource prices rise,the short-run aggregate supply curve shifts to the left,causing the economy to contract.

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Definitions:

Body Direction

Terms used to describe the locations and orientations of structures within the body, such as anterior, posterior, medial, and lateral.

Complete Workout

A comprehensive exercise routine that targets all major muscle groups, often including strength, cardiovascular, and flexibility training.

Conditioning

The process of training or developing physical fitness through exercises that improve strength, endurance, flexibility, or coordination.

Warm-up

A series of low-intensity exercises performed before engaging in physical activity to prepare the body and reduce the risk of injury.