-Refer to the above diagrams,in which the numbers in parentheses after the AD₁,AD₂,and AD₃ labels indicate the level of investment spending associated with each curve.All figures are in billions.The economy is at point Y on the investment demand curve.Given these conditions,what policy should the monetary authorities pursue to achieve a non-inflationary full-employment level of real GDP? A) increase aggregate demand from AD₃ to AD₂ B) decrease the money supply from $225 to $150 billion C) increase interest rates from 4 to 8 percent D) make no change in monetary policy

Question

Quizplus · Accepted Answer

If the economy is already at a non-inflationary full-employment level of real GDP, no change in monetary policy is needed.

-Refer to the Above Diagrams,in Which the Numbers in Parentheses