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Use the following to answer questions :
Figure: AD-AS Use the following to answer questions : Figure: AD-AS   -(Figure: AD-AS)  Refer to the figure AD-AS. If our economy is at equilibrium and the Fed uses expansionary monetary policy, _____ will shift to _____ and the economy will move from _____. Then nominal wages will _____ and _____ will shift to _____. The economy will move from _____. A) AD<sub>2</sub>; AD<sub>1</sub>; E<sub>2 </sub>to E<sub>1</sub>; rise very quickly; SRAS<sub>1</sub>; SRAS<sub>2</sub>; E<sub>2 </sub>to E<sub>3</sub> B) SRAS<sub>1</sub> ; SRAS<sub>2 </sub>; E<sub>2 </sub>to E<sub>3</sub>; stay the same; AD<sub>2</sub>; AD<sub>1</sub>; E<sub>2 </sub>to E<sub>1</sub> C) SRAS<sub>2</sub>; SRAS<sub>1</sub>; E<sub>3 </sub>to E<sub>2</sub>; stay the same; AD<sub>2</sub>; AD<sub>1</sub>; E<sub>2 </sub>to E<sub>1</sub> D) AD<sub>1</sub>; AD<sub>2</sub>; E<sub>1 </sub>to E<sub>2</sub>; rise very quickly; SRAS<sub>1</sub>; SRAS<sub>2</sub>; from E<sub>2 </sub>to E<sub>3</sub>
-(Figure: AD-AS) Refer to the figure AD-AS. If our economy is at equilibrium and the Fed uses expansionary monetary policy, _____ will shift to _____ and the economy will move from _____. Then nominal wages will _____ and _____ will shift to _____. The economy will move from _____.


Definitions:

Defendant

An individual, company, or institution sued or accused in a court of law.

Pleading Rules

The legal guidelines that dictate the form, content, and manner in which pleadings must be drafted and filed in court proceedings.

Procedural Rules

Guidelines that govern the process and methods used in legal and administrative proceedings.

Substantive Law

The part of law that deals with the rights and duties of people and the punishments for those who violate these laws.

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