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Question 18

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Use the following to answer questions .
Exhibit: Economic Adjustments Use the following to answer questions . Exhibit: Economic Adjustments -(Exhibit: Economic Adjustments) Assume that the economy is at point b. A decrease in the money supply would cause A) a shift of the aggregate demand curve from AD<sub>1</sub> to AD<sub>2</sub>. B) a shift of the aggregate demand curve from AD<sub>2</sub> to AD<sub>1</sub>. C) a shift of the short run aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>. D) a shift of the short run aggregate supply curve from AS<sub>2</sub> to AS<sub>1</sub>.
-(Exhibit: Economic Adjustments) Assume that the economy is at point b. A decrease in the money supply would cause


A) a shift of the aggregate demand curve from AD1 to AD2.
B) a shift of the aggregate demand curve from AD2 to AD1.
C) a shift of the short run aggregate supply curve from AS1 to AS2.
D) a shift of the short run aggregate supply curve from AS2 to AS1.

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