In the Short Run, If the Fed Undertakes Contractionary Monetary

question 86

Multiple Choice

In the short run, if the Fed undertakes contractionary monetary policy, the effect will be to shift the:

• A)AD curve out to the right.
• B)AD curve in to the left.
• C)SAS curve up.
• D)SAS curve down.

---

Definitions:

Unconditioned Responses

Automatic, natural reactions to a stimulus that occur without any prior learning or conditioning.

Respondent Behavior

Behavior that is elicited by a prior stimulus without the need for learning, typically reflecting reflexive or involuntary responses.

Studying

The act of devoting time and attention to acquiring knowledge on an academic subject, especially by means of books.

Blushing

A physiological response characterized by the reddening of the face due to emotional states such as embarrassment, shame, or modesty.