-Use the Aggregate Supply/aggregate Demand Model in Figure 19

Multiple Choice

-Use the aggregate supply/aggregate demand model in Figure 19.4 to answer the following scenario.The European central bank reduces its interest rates,while the Federal Reserve maintains its federal funds rate.The economy initially moves from point __________ to point __________;eventually,the economy returns to the steady state at point __________.

A) a;d;a
B) a;d;a.
C) c;d;c
D) b;d;b
E) Not enough information is given.