Use the Figure Below to Answer the Following Question(s)

question 83

Multiple Choice

Use the figure below to answer the following question(s) . Figure 14-1
In Figure 14-1, an unanticipated shift to a more expansionary monetary policy will shift

• A) AD to the right and temporarily increase real GDP.
• B) AD to the left and temporarily reduce real GDP.
• C) AD to the right and SRAS to the left and lead to higher prices (inflation).
• D) both AD and SRAS to the right and lead to an increase in real GDP.

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