Figure 8-1 -In Figure 8-1 Above,suppose That the Economy Traces the Path

Multiple Choice

Figure 8-1

-In Figure 8-1 above,suppose that the economy traces the path E₀ to E₁ to E₁'.We might conclude that ________ fiscal or monetary policy shifted the AD curve with price expectation first ________ then ________.

A) expansionary;constant;revised upward
B) expansionary;revised upward;constant
C) contractionary;revised upward;constant
D) contractionary;constant;revised downward