Multiple Choice
-In the above figure, the economy initially is at point A and then an increase in the quantity of money moves the economy to point D. If the quantity of money remains constant, the economy will adjust with the
A) short-run aggregate supply shifting leftward to SAS1.
B) short-run aggregate supply shifting leftward to SAS2.
C) aggregate demand shifting back to AD0.
D) aggregate demand shifting to AD2.
Correct Answer:
Verified
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