Question: how would u answer these 1I Normal I No Spac... Heading | Heading 2 Title Subtitle Font Paragraph Styles The following AD-AS diagram is only

 how would u answer these 1I Normal I No Spac... Heading

how would u answer these

| Heading 2 Title Subtitle Font Paragraph Styles The following AD-AS diagram

1I Normal I No Spac... Heading | Heading 2 Title Subtitle Font Paragraph Styles The following AD-AS diagram is only for the questions 8 and 9 only. LRAS P SRASI C SRASz B A SRAS, D AD Y Y 8. In the graph above, assume that the economy is currently in point E. In this situation, if the government does not take any policy measures to bring the economy to the fill-employment level of output, the economy will move toward point _in the long run. a. C b. A C. D d. E 9. (Continue to use the above graph) Again, assume that the economy is currently in point E. Now, the Fed wants to stabilize the output (that is, maintain the output at the full-employment level) by conducting monetary policy. Then the new equilibrium output will be at_ a. A b. B C d. D e. E

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