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question 115

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Use the following to answer questions: Use the following to answer questions:   -(Figure: AD-AS) Refer to Figure: AD-AS.If our economy is at equilibrium and the Bank of Canada 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;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;SRAS<sub>1</sub>;SRAS<sub>2</sub>;E<sub>2 </sub>to E<sub>3</sub>
-(Figure: AD-AS) Refer to Figure: AD-AS.If our economy is at equilibrium and the Bank of Canada 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 _____.


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