Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:

Are all points inside the production possibilities frontier unattainable?

What will be an ideal response?

In Figure 4-6 above, with IS0 shifting to IS1, movement from points 0 to 2 requires the real money supply to ________

A) rise by the same percentage as income B) fall by the same percentage as income C) remain constant D) none of the above