Suppose the economy is initially in long-run equilibrium. The Fed enacts a policy to decrease the required reserve ratio. In the short-run, this expansionary monetary policy will cause: . Ashift from AD2 to AD1 and a movement to point C, with a lower price level and the same output. . Ashift from SRAS1 to SRA52 and a movement to point B, with a lower price level and higher output. . Ashift from SRA82 to SRAS1 and a movement to point D, with a higher price level and lower output. . A shift from AD1 to AD2 and a movement to point B, with a higher price level and higher output. 122 120 118 116 114 112 110 108 106 104 102 100 98 96 92 90 Price Level ,0 SRAs2 ,0 I3 AD1 | I I I I I I 2 4 6 8 10 12 14 16 Real GDP (trillions of 2000 dollars)