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Use the “Economic Adjustments” Figure 31-4. Assume that the economy is at point c. An increase in the money supply would cause:

a. a shift of the SRAS1 curve to SRAS2.
b. a shift of the SRAS2 curve to SRAS1.
c. a shift of the AD1 curve to AD2.
d. a shift of the AD2 curve to AD1.
e. a shift of the AD1 curve to AD2 and a shift of the SRAS2 curve to SRAS1.


Use the “Economic Adjustments” Figure 31-4. Assume that the economy is at point c. An increase in th

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