Question:

AD 4 I I 4 4 l I I 0 5500 soon nu: GDP MIIHI {bh M "ll \"I\" dun n) For the economy depicted above, a successful attempt by the Fed to achieve full employment would Select one: 0 a. require no change in monetary policy and result in a stable price level. 0 b. require an expansionary monetary policy and result in a 10% inflation rate during the adjustment period. 0 c. require a contractionary monetary policy and result in a 5% inflation rate during the adjustment period. 0 d. require a contractionary monetary policy and result in a 10% decline in the price level during the adjustment period. 0 e. require an expansionary monetary policy and result in a 5% inflation rate during the adjustment period