Use the following to answer questions :
Figure: Economic Adjustments
-(Figure: Economic Adjustments) Look at the figure Economic Adjustments. Assume that the economy is at point c. The effect of an increase in the money supply is represented by a shift of the _____ curve to _____.

Question

Use the following to answer questions :
Figure: Economic Adjustments 
-(Figure: Economic Adjustments) Look at the figure Economic Adjustments. Assume that the economy is at point c. The effect of an increase in the money supply is represented by a shift of the _____ curve to _____.

Quizplus · Accepted Answer

An increase in the money supply will shift the AD curve to the right, from AD1 to AD2.

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