Respuesta :
When the economy is currently in short-run equilibrium at point a, the type of monetary policy which would be most effective to bring the economy back to long-run equilibrium is expansionary monetary policy to shift AD to the right. The correct answer is A.
What are short-run and long-run equilibrium?
Short-run equilibrium is when the aggregate amount of output is the same as the aggregate amount of demand. An economy is in short-run equilibrium when some factors of production are fixed and some are variable. Output can be raised only by raising the application of the variable factor. In the short run, the scale of production stays constant.
Long-run equilibrium is when prices adjust to changes in the market and the economy functions at its full potential. In the long run, a firm reaches equilibrium when it adjusts its plant/s to produce output at the minimum point of their long-run Average Cost (AC) curve. This curve is tangential to the market price described demand curve.
Learn more about short-run and long-run equilibrium at: https://brainly.com/question/16778362
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