Refer to the graph shown. Monetary policy that shifts the AD curve from AD0 to AD1 and moves the economy from A to B:
A. increases both real and nominal output in the short run.
B. increases real output but not nominal output in the short run.
C. doesn't increase real or nominal output in the short run.
D. increases nominal output but not real output in the short run.
Answer: A
Economics
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