Refer to the Following Figure to Answer the Next Questions

question 75

Multiple Choice

Refer to the following figure to answer the next questions.

-According to the figure, if the economy started at full-employment output, contractionary monetary policy would cause real gross domestic product (GDP) to ________ in the short run.

• A) increase from Y₁ to Y₂
• B) increase from Y₁ to Y₃
• C) decrease from Y₂ to Y₁
• D) decrease from Y₃ to Y₂
• E) increase from Y₂ to Y₃

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