Multiple Choice
The graph shown displays various price and output levels in an economy. 
If the economy is currently at point E2, the Fed is most likely to undertake _______ monetary policy because it will shift _______.
A) expansionary; AD to the right
B) contractionary; AD to the left
C) expansionary; AD to the left
D) contractionary; AS to the right
Correct Answer:
Verified
Correct Answer:
Verified
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