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Refer to the Following Figure to Answer the Following Questions

Question 156

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Refer to the following figure to answer the following questions. 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 P<sub>1</sub> to P<sub>3</sub>. B)  increase from P<sub>1</sub> to P<sub>2</sub>. C)  initially increase from P<sub>1</sub> to P<sub>2</sub> and over time increase to P<sub>3</sub>. D)  decrease from P<sub>3</sub> to P<sub>2</sub>. E)  decrease from P<sub>3</sub> to P<sub>1</sub>.
-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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