Refer to the Information Provided in Figure 32

Multiple Choice

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow. Figure 32.2
-Refer to Figure 32.2. According to monetarists, an expansionary fiscal policy in the long run and after all the adjustments have been made

A) does not increase equilibrium output or the price level.
B) increases equilibrium output above Y₁, but does not change the price level.
C) increases the price level above P₁, but does not change equilibrium output.
D) increases equilibrium output above Y₁ and decreases the price level below P₁.