-Refer to the Above Figure

question 21

Multiple Choice

-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD₂. In the short run

• A)real GDP will be Y₁, and the price level will be P₁.
• B)real GDP will be Y₂, and the price level will be P₂.
• C)real GDP will be between Y₁ and Y₂, and the price level will be above P₁.
• D)real GDP will be between Y₁ and Y₂, and the price level will be below P₂.

---

Definitions:

Political Ideologies

Systems of beliefs or ideas that articulate how societies should work and the political, economic, and social ideals they should follow.

Individualists

People who prioritize personal independence and self-reliance, often valuing personal achievement over collective goals.

Anarchists

Individuals who advocate for the abolition of government and the organization of society on a voluntary, cooperative basis without recourse to force or compulsion.

Self-Interest

The driving force behind individual actions motivated by personal gain, benefits, or fulfillment.