Figure 17-4 -Refer to Figure 17-4. If the Economy Is at Point

Multiple Choice

Figure 17-4
-Refer to Figure 17-4. If the economy is at point h and the Bank of Canada pursues a contractionary monetary policy, then the economy will move to which point in the short and long run?

A) point d in the short run and point c in the long run
B) point b in the short run and point c in the long run
C) point c in the long-run and point a in the long run
D) point m in the short run and point c in the long run