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The graph shows the effects of an expansionary monetary policy, which, over time, results in shifts of both the aggregate demand curve (AD1 to AD2)

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The graph shows the effects of an expansionary monetary policy, which, over time, results in shifts of both the aggregate demand curve (AD1 to AD2) and the short-run aggregate supply curve (SRAS1 to SRAS2). If the dot indicates the economy's initial equilibrium state, place a second dot to show the economy's new equilibrium in the short run, given that the monetary policy move was completely expected. To refer to the graphing tutorial for this question type, please click here. . IrD + +0 Prion level ($1 200 LAAS SRAGE 175 BRASI 137 4 125 125 - -. 112 5 AD2 ADT 16 OF 20 QUESTIONS COMPLETED SUBMIT

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