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

question 164

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 14-5

-In Figure 14-5,AD₁ and SRAS₁ indicate an economy initially operating at full-employment output level,Y₁.The short-run impact of the Fed unexpectedly shifting to a more restrictive monetary policy will be

• A)a decrease in aggregate demand to AD₂ and a decrease in real output to Y₂.
• B)a decrease in aggregate demand to AD₂ but real output would remain at Y₁.
• C)a decrease in aggregate demand to AD₂ and an increase in short-run aggregate supply to SRAS₂,causing the price level to fall to P₃ and real output to remain unchanged at Y₁.
• D)no change;AD and SRAS will stay at AD₁ and SRAS₁.

---

Definitions:

Eukaryotic Cell Division

Processes, including mitosis and meiosis, through which eukaryotic cells divide, ensuring accurate distribution of chromosomes to daughter cells.

Ribosomes

Cellular structures responsible for protein synthesis, reading mRNA sequences to assemble amino acids into polypeptides.

Protein Synthesis

The cellular process of building proteins from amino acids based on the instructions coded in DNA and mediated by RNA.

Microfilament

Cytoskeletal element composed of actin subunits; reinforces cell membranes; functions in movement and muscle contraction.