Refer to the Information Provided in Figure 18

question 3

Multiple Choice

Refer to the information provided in Figure 18.1 below to answer the questions that follow.
Figure 18.1
-Refer to Figure 18.1.According to monetarists,an expansionary fiscal policy in the long run and after all the adjustments have been made

• A)does not increase equilibrium output or the price level.
• B)increases equilibrium output above Y₁,but does not change the price level.
• C)increases the price level above P₁,but does not change equilibrium output.
• D)increases equilibrium output above Y₁ and decreases the price level below P₁.

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Definitions:

Altered

Changed or modified, often referring to a document that has been tampered with or adjusted in some way.

Possessory Interest

A right or interest in property that allows the holder physical control or occupancy of the property.

National Bank

A type of bank chartered by the federal government and, among other powers, has the ability to issue notes that serve as currency.

Assigned Right

A right that has been transferred from one party (the assignor) to another (the assignee), typically involving rights to receive payments or benefits.