Figure 15-2
-In Figure 15-2,suppose the economy is initially at a short run equilibrium at point A and there is an unanticipated increase in the money supply.Which point represents the new short run equilibrium?

Question

Figure 15-2 
-In Figure 15-2,suppose the economy is initially at a short run equilibrium at point A and there is an unanticipated increase in the money supply.Which point represents the new short run equilibrium?

Quizplus · Accepted Answer

The unanticipated increase in the money supply will shift the aggregate supply curve to the right, leading to a new short-run equilibrium at point B.

Figure 15-2 -In Figure 15-2,suppose the Economy Is Initially at a Short