Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new long-run equilibrium is given by point

In the long run, the expansion path is

A) horizontal. B) vertical. C) diagonal. D) Not enough information.

Buyers who were originally willing to buy 800 units of a good at $4 per unit are now willing to buy 1200 units at $4 per unit. That change would be described as: a. an increase in demand

b. a decrease in demand. c. an increase in quantity demanded. d. a decrease in quantity demanded.