ECSENOMICS An Expansionary monetary policy Shifts AD to Curve to the Right, Raising Output and Prices 1-198 Figure 26-8 Expansionary Monetary Policy =I AS AD 5 85=5 Real gdp McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. An Expansionary Monetary Policy Shifts AD Curve to the Right, Raising Output and Prices T-198 Figure 26-8