In the above figure, the economy is initially at point B. If the Fed increases the quantity of money, there is
A) a movement to point C.
B) a movement to point A.
C) a shift to AD2.
D) a shift to AD1.
D
Economics
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Which of the following real-world phenomena does the classical model ignore?
a. Frictional unemployment b. Inflation c. Real output growth d. Cyclical unemployment e. Structural unemployment
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