0 0 0 0 0 0 a. b. C. O d. e. O f. If the Fed engages in contractionary monetary policy: in the short-run what will be the effect on AD and SRAS. AD will shift left and SRAS will not shift AD will shift left and SRAS will shift left AD will shift right and SRAS will not shift AD will not shift and SRAS will shift right AD will not shift and SRAS will not shift AD will not shift and SRAS will shift left QUESTION 2. a. b. O c. d. If Congress increases taxes: What will be the effect on output and the price level in the short-run Output will increase and prices will increase Output will increase and prices will decrease Output will decrease and prices will increase Output will decrease and prices will decrease