-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD₂. In the short run
A)real GDP will be Y₁, and the price level will be P₁.
B)real GDP will be Y₂, and the price level will be P₂.
C)real GDP will be between Y₁ and Y₂, and the price level will be above P₁.
D)real GDP will be between Y₁ and Y₂, and the price level will be below P₂.

Question

-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD₂. In the short run
A)real GDP will be Y₁, and the price level will be P₁. 
B)real GDP will be Y₂, and the price level will be P₂. 
C)real GDP will be between Y₁ and Y₂, and the price level will be above P₁. 
D)real GDP will be between Y₁ and Y₂, and the price level will be below P₂.

Quizplus · Accepted Answer

The Answer of 
-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD₂. In the short run
A)real GDP will be Y₁, and the price level will be P₁. 
B)real GDP will be Y₂, and the price level will be P₂. 
C)real GDP will be between Y₁ and Y₂, and the price level will be above P₁. 
D)real GDP will be between Y₁ and Y₂, and the price level will be below P₂.

-Refer to the Above Figure