In the above figure, as the economy adjusts toward equilibrium, ...

[Kthamas]

In the above figure, as the economy adjusts toward equilibrium, the
 
  A) AD curve will shift rightward.
  B) SAS curve will shift rightward.
  C) AD curve will shift leftward.
  D) SAS curve will shift leftward.

Question 2

In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of a fall in the nominal interest rate?
 
  A) The demand for money curve would shift rightward to MD2.
  B) The demand for money curve would shift leftward to MD0.
  C) There would be a movement upward along the demand for money curve MD1.
  D) There would be a movement downward along the demand for money curve MD1.

[pocatato]

Answer to Question 1

D

Answer to Question 2

D

[Kthamas]

TYSM

[alvinum]

Excellent