Refer to the Following Figure to Answer the Next Two

question 41

Multiple Choice

Refer to the following figure to answer the next two questions:

-According to the figure,if the economy started at full-employment output,expansionary 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