-Which aggregate supply-aggregate demand diagram above shows the effect on real GDP and the price level of monetary policy when it is used to fight a recession?

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Figure A shows the effect of monetary policy when it is used to fight a recession. Monetary policy can be used to increase the money supply, which will lead to a decrease in interest rates. This will make it cheaper for businesses to borrow money and invest, and for consumers to borrow money and spend. This will lead to an increase in aggregate demand, which will shift the aggregate demand curve to the right. This will lead to an increase in real GDP and the price level.

-Which Aggregate Supply-Aggregate Demand Diagram Above Shows the Effect on Real