Figure 14-3
-In Figure 14 -3,assume the economy is at A D₂ and the Bank of Canada acts so as to move the economy to A D₁.In this situation,the Bank of Canada has practiced

Question

Figure 14-3 
-In Figure 14 -3,assume the economy is at A D₂ and the Bank of Canada acts so as to move the economy to A D₁.In this situation,the Bank of Canada has practiced

Quizplus · Accepted Answer

The Bank of Canada moving the economy from AD₂ to AD₁ indicates a reduction in aggregate demand, which is achieved through contractionary monetary policy.

Figure 14-3 -In Figure 14 -3,assume the Economy Is at a D₂