Refer to the following figure to answer the next questions.

-According to the figure, expansionary monetary policy will cause an economy that is initially at full-employment output to go from equilibrium to equilibrium in the short run.
A) A; C
B) A; B
C) A; D
D) C; B
E) C; D

Question

Refer to the following figure to answer the next  questions.
 
-According to the figure, expansionary monetary policy will cause an economy that is initially at full-employment output to go from equilibrium to equilibrium in the short run.
A) A; C 
B) A; B 
C) A; D 
D) C; B 
E) C; D

Quizplus · Accepted Answer

Expansionary monetary policy increases aggregate demand, moving the economy from full-employment equilibrium (A) to a higher output and price level (B) in the short run.

Refer to the Following Figure to Answer the Next