Explain goal of the monetary authorities is full-employment


The numbers in parentheses after the AD1, AD2, and AD3 labels indicate the levels of investment spending associated with each curve. All figures are in billions. If the money supply is MS1and the goal of the monetary authorities is full-employment output Qf, they should:

Choose one answer.

A. increase the money supply from $80 to $100.
B. increase the money supply from $80 to $120.
C. maintain the money supply at $80.
D. decrease the money supply from $80 to $60.

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Microeconomics: Explain goal of the monetary authorities is full-employment
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