Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions
Figure: Negative Supply Shock
-(Figure: Negative Supply Shock) Refer to the figure.This economy initially begins at point A and a negative supply shock takes it to point Y.If the Fed reacts by increasing money growth by 9%,this would take the economy to:

• A) point A.
• B) point B.
• C) point X.
• D) point V.