Use the Following to Answer Questions

question 75

Multiple Choice

Use the following to answer questions .
Exhibit: Monetary Policy and Long-Run Aggregate Demand and Aggregate Supply
-(Exhibit: Monetary Policy and Long-Run Aggregate Demand and Aggregate Supply) Assume that the economy is at point b. A decrease in the money supply would cause

• A) a shift of the aggregate demand curve from AD₁ to AD₂.
• B) a shift of the aggregate demand curve from AD₂ to AD₁.
• C) a shift of the short-run aggregate supply curve from AS₁ to AS₂.
• D) a shift of the short-run aggregate supply curve from AS₂ to AS₁.

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