-Refer to the Above Figure

question 267

Multiple Choice

-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the long run

• A) the unemployment rate will be the same rate as before the contractionary monetary policy.
• B) the unemployment rate will be larger than the rate before the expansionary monetary policy.
• C) the unemployment rate will be smaller than the rate before the expansionary monetary policy.
• D) the unemployment rate can increase or decrease depending upon how much the LRAS will shift.

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The numeral 34, representing a quantity or sequence; it does not have a specific definition outside of its numeric value.

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The number following fifteen and preceding seventeen, often denoting a specific quantity in a sequence.

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