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

question 214

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 14-9

AD₁ and SRAS₁ indicate the initial conditions in an economy,with the current level of output,Y₂,being the full employment level,and the current price level being P₁.
-Refer to Figure 14-9.If the Fed unexpectedly increases the money supply,in the long run,the impact of the unanticipated expansionary policy will be a movement to

• A)P₁ and Y₂.
• B)P₂ and Y₁.
• C)P₂ and Y3.
• D)P₃ and Y₂.

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