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Question
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 the price level will be below P2.
Answer
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Related questions
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