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Please also state on how to change the graph. I.E where to move the lines and place the
dots....Thanks
Solution
1. price levels may be increasing too quickly leading to high inflation. then only a central bank
thinks about contractionary monetary policy.
2. if they implemented a successful contradictionary monetary policy then the aggregate demand
will comes to AD1 and the supply also declines to meet the demand only.

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Please also state on how to change the graph. I.E where to move the .pdf

  • 1. Please also state on how to change the graph. I.E where to move the lines and place the dots....Thanks Solution 1. price levels may be increasing too quickly leading to high inflation. then only a central bank thinks about contractionary monetary policy. 2. if they implemented a successful contradictionary monetary policy then the aggregate demand will comes to AD1 and the supply also declines to meet the demand only.