How Is the Effect of Expansionary Monetary Policy Depicted in an Aggregate

question 249

Multiple Choice

How is the effect of expansionary monetary policy depicted in an aggregate supply-aggregate demand graph?

• A) The aggregate supply curve shifts leftward.
• B) The aggregate supply curve shifts rightward.
• C) The aggregate demand curve shifts rightward.
• D) The equilibrium level of income increases, but neither curve shifts.

---

Definitions:

Cones

Photoreceptor cells in the retina that are responsible for color vision and functioning in well-lit conditions.

Rods

Photoreceptor cells in the retina of the eye that are responsible for vision at low light levels.

Night Vision

The ability to see in low light conditions, either naturally through biological adaptations or through the use of technological aids.

Fovea

A tiny pit located in the macula of the retina that is responsible for sharp central vision.