Consider the figures below and determine which is the best description of what causes the shift from AD, to AD₂ Example (A) LRAS SRAS P1 P2 P2 XXX P1 AD₂ B A y2y1 Real GOP Example (B) LRAS OA Example A shows a contractionary monetary policy. The price level and real GDP both fall. OB. Example B shows an expansionary monetary policy. The price level and real GDP both rise. OC. Both examples show expansionary monetary policy. The price level and real GDP both rise. OD. Example A shows an expansionary monetary policy. The price level rises and real GDP falls. OE. Both A and B. SRAS AD₂ y1y2 AD₁ Real GDP G
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Consider the figures below and determine which is the best description of what causes the shift from AD₁ to AD₂. Price level (GDP deflator) P1 P2 Example (A) LRAS SRAS B |y2 y1 Real GDP AD₁ AD2 O A. Example A shows a contractionary
![Consider the figures below and determine which is the best description of what causes the shift from AD, to AD2₂
P1
P2
Example (A)
LRAS SRAS
B
y2 vị
Real GDP
AD₂
3
OA Example A shows a contractionary monetary policy. The price level and real GDP both fall.
OB. Example B shows an expansionary monetary policy. The price level and real GDP both rise.
OC. Both examples show expansionary monetary policy. The price level and real GDP both rise.
OD. Example A shows an expansionary monetary policy. The price level rises and real GDP falls.
OE. Both A and B.
P2
P1
Example (B)
LRAS
y1y2
Real GDP
SRAS
AD2
AD₁
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