(Answered) Both questions ask for the AS-AD model. However, please note that we used the IS-LM model to derive…

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➤ Why does an expansionary monetary policy shift the AD curve right when viewed through IS-LM?
Expansionary monetary policy increases nominal money supply, so at a given price level real money balances rise. The LM curve shifts right, lowering the interest rate and stimulating investment and consumption. In AS‑AD, this higher output at the same price level corresponds to a rightward shift in AD, raising short‑run GDP and easing recessionary gaps.

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