Figure 9.1 -Refer to Figure 9.1. a Reduction in the Money Supply

Multiple Choice

Figure 9.1
-Refer to Figure 9.1. A reduction in the money supply causes:

A) the aggregate demand curve to shift from AD₁ to AD₀.
B) the aggregate demand curve to shift from AD₁ to AD₂.
C) the economy to move from Point A to Point B, but will not shift the aggregate demand curve.
D) neither a shift of the aggregate demand curve nor a change in real GDP.