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-In the Above Figure, the Economy Initially Is at Point

Question 163

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 SAS<sub>1</sub>. B)  short-run aggregate supply shifting leftward to SAS<sub>2</sub>. C)  aggregate demand shifting back to AD<sub>0</sub>. D)  aggregate demand shifting to AD<sub>2</sub>.
-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.

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