In the diagram below, suppose the economy is initially at point c. If the Money Supply growth rate decreases, where does the economy move to in the short-run? Curve 1 Inflation Rate e C b Curve 2 a Unemployment Rate ooo dPrice inflation Level Output Unemployment Rate Refer to Figure 17-3. When would the economy move from c and 3 to b and 2? in the long run if money supply growth decreased O in the short run if money supply growth decreased unexpectedly O in the long run if money supply growth increased in the short run if money supply growth increased unexpectedly Question 36 (1.25 points) Inflation (56) LRPC 10 H 7 5 SRPC SRPC 3 m 2 SRPC 7 8 9 10 Unemployment (%%) If the economy is at point a and the Bank of Canada pursues an expansionary monetary policy, then the economy will move to which point in the short and long rum? point b in the short run and point a in the long run point b in the short run and point c in the long run O point m in the short run and point h in the long run point a in the short run and point b in the long run