Economic Adjustments Price level LRAS SRAS, d ISRAS, 6 AD AD GFH Real GDP (per year) curve to (Ref 42-3 Figure: Economic Adjustments) Refer to Figure: Economic Adjustments. Assume that the economy is at point c. The effect of an increase in the money supply is represented by a shift of the a. AD2; AD1 b. SRAS2: SRAS1 c. AD1: AD2 d. SRAS1: SRAS2
