what shift graphs in monetary policy
If economy is below full-employment, easy monetary policy can shift aggregate demand and GDP toward full-employment equilibrium. with little effect on inflation (AD1 to AD2) 3. A tight monetary policy can reduce inflation with little effect on unemployment if economy is near or above full-employment (AD6 to AD5) 4.f economy is below full-employment, easy monetary policy can shift aggregate demand and GDP toward full-employment equilibrium. with little effect on inflation (AD1 to AD2) 3. A tight monetary policy can reduce inflation with little effect on unemployment if economy is near or above full-employment (AD6 to AD5) 4.