Refer to the following figure to answer the following questions. -According to the figure,if an expansionary monetary policy is fully expected,that policy will cause an economy initially in full-employment equilibrium to see its price level A) increase from P₁ to P₃. B) increase from P₁ to P₂. C) initially increase from P₁ to P₂ and over time increase to P₃. D) decrease from P₃ to P₂. E) decrease from P₃ to P₁.

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The Answer of Refer to the following figure to answer the following questions. -According to the figure,if an expansionary monetary policy is fully expected,that policy will cause an economy initially in full-employment equilibrium to see its price level A) increase from P₁ to P₃. B) increase from P₁ to P₂. C) initially increase from P₁ to P₂ and over time increase to P₃. D) decrease from P₃ to P₂. E) decrease from P₃ to P₁.

Refer to the Following Figure to Answer the Following Questions