-Refer to Figure 10.1. the Diagram Shows That

-Refer to Figure 10.1. The diagram shows that:

A) when real GDP is lower than Y_P the central bank will raise interest rates above i₀.
B) when real GDP is lower than Y_P the central bank will reduce money supply.
C) when real GDP is higher than Y_P the central bank will raise interest rates above i₀.
D) when real GDP is higher than Y_P the central bank will increase money supply.