Use the Following to Answer Questions

question 120

Multiple Choice

Use the following to answer questions :
Figure: AD-AS Model and the Short-Run Phillips Curve
-(Figure: AD-AS Model and the Short-Run Phillips Curve) Look at the figure AD-AS Model and the Short-Run Phillips Curve. If the central bank increases the money supply so that aggregate demand shifts from AD₁ to AD₂, then real GDP will increase by:

• A)zero.
• B)2%.
• C)4%.
• D)6%.