If the original level of aggregate demand is AD0, then an expansionary monetary policy that shifts aggregate demand to AD1 will only:
A. create an inflationary increase in price level.
B. create an increase in GDP.
C. create an increase in unemployment.
D. create a deflationary loss in price level.
Answer:A
If the original level of aggregate demand is AD0, then an expansionary monetary policy that shifts aggregate demand to AD1 will only:
A. create an inflationary increase in price level. B. create an increase in GDP. C. create an increase in unemployment. D. create a deflationary loss in price level.
Explanation: Type: Multiple Choice