-In the above figure, the economy initially is at point A and then an increase in the quantity of money moves the economy to point D. If the quantity of money remains constant, the economy will adjust with
A) aggregate demand shifting back to AD0.
B) aggregate demand shifting to AD2.
C) short-run aggregate supply shifting leftward to SAS2.
D) short-run aggregate supply shifting leftward to SAS1.
Correct Answer:
Verified
Q56: When the AD and SAS curves intersect
Q57: A demand-pull inflation occurred in the United
Q58: As far as demand-pull inflation goes, the
Q59: Q61: Cost-push inflation starts with a Q62: Cost-push inflation can start with Q63: Suppose that the money prices of raw Q64: Cost-push inflation can start with Q65: By itself, a fall in the price Q161:
A) falling GDP
A) a decrease
A) higher money
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