Figure 16-3
-Refer to Figure 16-3. Starting from c and 3, in the short run, where does an unexpected increase in money supply growth move the economy to?
A)a and1
B)b and 2
C)back to c and 3
D)d and 4

Question

Figure 16-3 
-Refer to Figure 16-3. Starting from c and 3, in the short run, where does an unexpected increase in money supply growth move the economy to?
A)a and1 
B)b and 2 
C)back to c and 3 
D)d and 4

Quizplus · Accepted Answer

An unexpected increase in money supply growth typically shifts the aggregate demand curve to the right, moving the economy to a higher output and price level, such as point d and 4 in the short run.

Figure 16-3 -Refer to Figure 16-3. Starting from C and 3, in and 3