Refer to the Graph Above

question 35

Multiple Choice

Refer to the graph above. Assume that the economy is initially in equilibrium at the intersection of AD₁ and AS₁. Suppose that there is economic growth which shifts AS₁ to AS₂. With the shift from AS₁ to AS₂, the monetary rule would call for an increase in the money supply such that:

• A) AD₁ would shift to AD₂
• B) AD₁ would shift to AD₃
• C) AD₁ would shift to AD₄
• D) AS₂ would shift to AS₁

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Definitions:

Suppository

A form of medication designed to be inserted into the rectum, vagina, or urethra, where it dissolves.

Ointment

A semi-solid preparation usually applied to the skin for a therapeutic purpose or as a protective barrier.

Enema

A medical procedure involving the injection of liquid into the rectum to encourage bowel movement or administer medication.

Narcotic

A class of drugs that reduce pain, alter mood and behavior, and usually have the potential for dependence and abuse.