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Suppose there is a $1 trillion increase in the money supply that causes the aggregate demand curve to shift 120- rightward. LRAS If people do

Suppose there is a $1 trillion increase in the money supply that causes the aggregate demand curve to shift 120- rightward. LRAS If people do not anticipate the increase in the 119 SRAS? money supply, in the short run, the short-run supply curve SRAS, 118 O A. becomes horizontal. dB B. does not shift. Price Level 117- OC. shifts leftward immediately 116- O D. shifts rightward immediately. AC In the short run, there is a movement from 115- AD O A. A to B. 114+ 15 15 5 16 165 17 175 18 185 19 195 O B. B to C. Real GDP per Year ($ trillions) O C. C to B O D. A to C

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