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Question 112

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Use the following to answer questions:
Figure: Economic Adjustments Use the following to answer questions: Figure: Economic Adjustments -(Figure: Economic Adjustments) Refer to Figure: Economic Adjustments. Assume that the economy is at point c. The effect of an increase in the money supply is represented by a shift of the _____ curve to _____. A) SRAS<sub>1</sub>; SRAS<sub>2</sub> B) SRAS<sub>2</sub>; SRAS<sub>1</sub> C) AD<sub>1</sub>; AD<sub>2</sub> D) AD<sub>2</sub>; AD<sub>1</sub>
-(Figure: Economic Adjustments) Refer to Figure: Economic Adjustments. Assume that the economy is at point c. The effect of an increase in the money supply is represented by a shift of the _____ curve to _____.


A) SRAS1; SRAS2
B) SRAS2; SRAS1
C) AD1; AD2
D) AD2; AD1

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