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Expansionary monetary policy is used to decrease unemployment and increase real GDP. This policy works in the short run, but is it effective in the long run? Place the following events in order from first to last.The Fed invokes expansionary monetary policy by increasing money supply.The AD curve shifts rightward.Resource prices adjust.SRAS shifts to the left.The economy moves to a new long-run equilibrium.

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The order from first to last, of using expansionary monetary policy is used to decrease unemployment and increase real GDP is :

  • The Fed invokes expansionary monetary policy by increasing the money supply
  • The AD curve shifts to the right
  • Resource price adjusts
  • SRAS curve shifts to the left
  • The economy moves to a new long-run equilibrium

How does expansionary monetary policy work ?

Expansionary monetary policy will see the government or the central banking system, increasing the amount of money in the economy through various methods such as decreasing the discount rate and open market operations.

Once this happens, people will have more money to spend and so the Aggregate Demand Curve will shift to the right to show that demand has increased. Then the resource price will adjust because there needs to be balance. The short run aggregate supply curve will shift left as supply drops therefore leading to a new long - run equilibrium.

Find out more on expansionary monetary policy at https://brainly.com/question/18939014

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