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Refer to the Following Figure to Answer the Following Questions

Question 140

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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 real gross domestic product (GDP) A) increase from Y<sub>2</sub> to Y<sub>3</sub>. B) first increase from Y<sub>2</sub> to Y<sub>3</sub> but then decrease back to Y<sub>2</sub>. C) stay at Y<sub>2</sub>. D) decrease from Y<sub>2</sub> to Y<sub>1</sub>. E) increase from Y<sub>1</sub> to Y<sub>2</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 real gross domestic product (GDP)


A) increase from Y2 to Y3.
B) first increase from Y2 to Y3 but then decrease back to Y2.
C) stay at Y2.
D) decrease from Y2 to Y1.
E) increase from Y1 to Y2.

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