No Inbox - boyu1871@bu x BU International Student X https://api.turnitin.cor x Paragraph Writing | Es x _ Report - Google Docs X Course Home X P Take a Test - Boyu Zh X C mathxl.com/Student/PlayerTest.aspx?testld=230781927¢erwin=yes GZ iii AF No Gmail YouTube Courses BU Student Link Menu P Piazza CodingBat Python Mylab P Pearson Norton Gradescope Python Tutor 111 CS 111: Home BU EC 102 AA/BB Introductory Macro Analysis FA 21 Boyu Zhu & 12/01/21 5:20 PM =Quiz: Problem Set 8 Question 1 of 25 This quiz: 25 point(s) possible This question: 1 point(s) possible Submit quiz Suppose the economy is initially in long-run equilibrium. The Fed enacts a policy to decrease the required reserve ratio. Price Level In the short-run, this expansionary monetary policy will cause: 1227 SRAS2 120- O A. A shift from AD, to AD, and a movement to point B, with a higher price level and higher output. 118- LRAS 116- B. A shift from SRAS, to SRAS2 and a movement to point B, with a lower price level and higher output. 114- 112- SRAS 1 O C. A shift from AD2 to AD, and a movement to point C, with a lower price level and the same output. 110- 108- 10 B O D. A shift from SRAS2 to SRAS, and a movement to point D, with a higher price level and lower output. 106- 104- 102- AD 2 100- 98- 96- 94- 92- AD 1 90-+ 0 2 4 6 8 10 12 14 16 Real GDP ( trillions of 2000 dollars) Next