Figure 16-4 -Refer to the Figure 16-4.If the Economy Is at Point

Multiple Choice

Figure 16-4

-Refer to the Figure 16-4.If the economy is at point h and the Bank of Canada pursues a contractionary monetary policy,then the economy will move to which of the following points 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