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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 $1 trillion increase in the money supply that causes the aggregate demand curve to shift 120- rightward. LRAS If people do not anticipate the increase in the 119 SRAS? money supply, in the short run, the short-run supply curve SRASH 118- Vc O A. becomes horizontal B O B. does not shift Price Level 117- O C. shifts leftward immediately 116- O D. shifts rightward immediately AC 115- AD 114+ 15 15.5 16 16.5 17 17.5 18 185 19 195 Real GDP per Year ($ trillions)

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