In the dynamic ad and as model, contractionary monetary policy causes the price level to fall. The statement is :a. True. When the AD curve shifts to the left, the price level falls and real GDP increases. b. False. Contractionary policy causes the price level to rise by less than it would have without the policy. c. True. When the AD curve shifts to the left, the price level and real GDP fall. d. False. contractionary monetary policy shifts the AD curve to the right: the price level and real GDP rise.