Use the Following to Answer Questions

question 46

Multiple Choice

Use the following to answer questions:
Figure: Monetary Policy II
-(Figure: Monetary Policy II) Refer to Figure: Monetary Policy II. To eliminate the inflationary gap from the short-run equilibrium at Y₂, monetary policy should be:

• A) expansionary.
• B) contractionary.
• C) neutral.
• D) balanced.

---

Definitions:

Illustration

A visual interpretation or explanation of text, concept, or process, often created as a drawing, diagram, or similar graphic design.

Second

A unit of time equal to one sixtieth of a minute, often used to measure duration or intervals.

Selected Object

A term referring to any item or element that has been clicked on or chosen in a computational environment for the purpose of editing, moving, or manipulation.

Slide Sorter

A feature in presentation software that displays thumbnail versions of slides, allowing users to easily reorder, add, or delete slides within a presentation.