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-Refer to the Above Figure

Question 21

Multiple Choice

-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD₂. In the short run A) real GDP will be Y₁, and the price level will be P₁. B) real GDP will be Y₂, and the price level will be P₂. C) real GDP will be between Y₁ and Y₂, and the price level will be above P₁. D) real GDP will be between Y₁ and Y₂, and the price level will be below P₂.
-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD₂. In the short run


A) real GDP will be Y₁, and the price level will be P₁.
B) real GDP will be Y₂, and the price level will be P₂.
C) real GDP will be between Y₁ and Y₂, and the price level will be above P₁.
D) real GDP will be between Y₁ and Y₂, and the price level will be below P₂.

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