Using the Aggregate Supply Drawn Under the Monetarist View,what Should

question 96

Multiple Choice

Using the aggregate supply drawn under the monetarist view,what should happen to the equilibrium price level and quantity of output if the Fed buys bonds?

• A) Equilibrium price level and equilibrium output should both increase.
• B) Equilibrium price level should increase,and equilibrium output should decrease.
• C) Equilibrium price level should decrease,and equilibrium output should increase.
• D) Equilibrium price level should increase and equilibrium output should stay constant.