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Q22

Question 22 5 pts Complete the following graph analysis by selecting the best choice in each dropdown box. The following graph combines the DD and AA schedules to locate short-run equilibrium. Note exchange rate is measured as dollars per euro. The output is at its full-employment level Y. Exchange rate, E DD2 E3 E E DD AA AA Output, Y E E2 a DD E Y' A temporary fall in world demand shift: [ Select] schedule to the AA1 [Select] , causin DD2 to DD1 [ Select] AA2 Temp e full employment (point 1) by shifting the [Select] schedule back to its original position. Temporary monetary expansion can restore full employment (point 3) by shifting [Select] to the right. A4 AA Output, Y E 3/ DD E A temporary fall in world demand shifts [Select] [Select] left right by shifting the [Select] monetary expansion can restore full employment (point 3) by shifting [Select] to the right. AA Output, Y schedule to the , causing the domestic dollar currency to Temporary fiscal expansion can restore full employment (point 1) schedule back to its original position. Temporary ES ER E A temporary fall in world demand shifts [Select] [Select] [Select] by shifting the [Select] DD1 monetary exp AA2 [Select] AA1 DD2 DD' AA Output, Y schedule to the , causing the domestic dollar currency to Temporary fiscal expansion can restore full employment (point 1) schedule back to its original position. Temporary ent (point 3) by shifting E AA1 DD2 70 DD E A temporary fall in world demand shifts [Select] [Select] [ Select] by shifting the [Select] monetary expansion can restore full employment (point 3) by shifting [ Select] to the right. AA2 DD1 44 AA Output, Y schedule to the causing the domestic dollar currency to Temporary fiscal expansion can restore full employment (point 1) schedule back to its original position. Temporary

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