Figure 17-3 -In Figure 17-3 Above,suppose We Are Working Under the Assumption

Multiple Choice

Figure 17-3

-In Figure 17-3 above,suppose we are working under the assumption of the Lucas model.Suddenly,monetary policy becomes more expansionary and every firm believes that the higher prices bid on their product is not being enjoyed by any other firm.We would picture this as a movement between points

A) A and C.
B) A and B.
C) D and B.
D) D and A.
E) A and D.