Refer to the following figure when answering
Figure 13.2: AD Curve
-Consider Figure 13.2. The aggregate demand curve ________ displays a relatively aggressive monetary policy, while the curve ________ displays a monetary policy completely unresponsive to changes in inflation.
A) $A D _ { 2 } ; A D _ { 1 }$
B) $A D _ { 2 } ; A D _ { 3 }$
C) $A D _ { 3 } , A D _ { 4 }$
D) All of these answers are correct.
E) None of these answers are correct.

Question

Refer to the following figure when answering  
Figure 13.2: AD Curve 
-Consider Figure 13.2. The aggregate demand curve ________ displays a relatively aggressive monetary policy, while the curve ________ displays a monetary policy completely unresponsive to changes in inflation.
A) $A D _ { 2 } ; A D _ { 1 }$ 
B) $A D _ { 2 } ; A D _ { 3 }$ 
C) $A D _ { 3 } , A D _ { 4 }$ 
D) All of these answers are correct. 
E) None of these answers are correct.

Quizplus · Accepted Answer

An aggressive monetary policy would shift the aggregate demand curve more significantly, which is represented by $A D _ { 2 }$. A monetary policy that is unresponsive to changes in inflation would result in a flatter aggregate demand curve, represented by $A D _ { 3 }$.

Refer to the Following Figure When Answering Figure AD2;AD1A D _ { 2 } ; A D _ { 1 }AD2​;AD1​

Refer to the Following Figure When Answering
Figure $A D _ { 2 } ; A D _ { 1 }$