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Use the graph below to answer the following question. If the economy is currently in equilibrium at E, and the central bank sells Treasury bills, the and will cause gap. curve will shift to the LRAS Aggregate price level, P SRAS P2 E2 P1 E1 AD 2 AD1 Real GDP Y1 YE= potential output O AD: left; a recessionary AD : left; a recessionary AD;; right ; an inflationary O AD, : right ; no

Use the graph below to answer the following question. If the economy is currently in equilibrium at E, and the central bank sells Treasury bills, the and will cause gap. curve will shift to the LRAS Aggregate price level, P SRAS P2 E2 P1 E1 AD 2 AD1 Real GDP Y1 YE= potential output O AD: left; a recessionary AD : left; a recessionary AD;; right ; an inflationary O AD, : right ; no

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Use the graph below to answer the following question. If the economy is currently in equilibrium at E and the central bank and will cause gap. sells Treasury bills, the curve will shift to the Aggregate price level, P LRAS SRAS P2 E2 P1 E1 AD 2 AD 1 Real GDP Y YE= potential output %3D AD:: left ; a recessionary AD : left ; a recessionary AD;; right; an inflationary O AD, : right ; no
Transcribed Image Text:Use the graph below to answer the following question. If the economy is currently in equilibrium at E and the central bank and will cause gap. sells Treasury bills, the curve will shift to the Aggregate price level, P LRAS SRAS P2 E2 P1 E1 AD 2 AD 1 Real GDP Y YE= potential output %3D AD:: left ; a recessionary AD : left ; a recessionary AD;; right; an inflationary O AD, : right ; no
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