Refer to the graphs below. The first graph shows the money market of an economy, and the second graph shows the market for goods and services in the economy.

I ATTACHED THE GRAPH

In the above diagrams, the numbers in the parentheses after the AD₁, AD₂, and AD₃labels indicate the levels of investment spending associated with each AD curve. All figures are in billions. Q_fis the full-employment level of real output. The interest rate in the economy is 4 percent. Which of the following should the monetary authorities do to achieve a non-inflationary full-employment level of real GDP?

Multiple Choice

• A)They should increase the money supply from $75 billion to $225 billion.
• B)They should decrease the money supply by $150 billion.
• C)They should increase the money supply by $200 billion.
• D)They should decrease the money supply from $225 billion to $150 billion.

Refer to the graphs below. The first graph shows the money market of an economy, and the second graph shows the market for goods and services in the economy. Interest rate (%) Ms; Msalsa Investment 12 X demand 8 Y A $75 150 225 $50 100 150 Amount of money Investment demanded and supplied AS PI A AD, (I=150) AD2 (I= 100) P3 AD3 (I-50) Q3 Q2 Q1