Refer to the Information Provided in Figure 18

question 110

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.