Refer to the Graph $A D _ { 1 }$ Intersects A

question 159

Multiple Choice

Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ { 1 }.$ . If
There is an anticipated decrease in aggregate demand to AD
$A D _ { 2 }$ , then, according to rational
Expectations theory, the path for adjustment runs from point

• A) A to B to C.
• B) A to D to C.
• C) A directly to C.
• D) A directly to D.

---

Definitions:

Imaginative

Possessing the ability or tendency to think creatively and inventively, often leading to new ideas or concepts.

Sexual Orientation

An inherent or immutable enduring emotional, romantic or sexual attraction to other people.

Title VII

A section of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Ablebodiedness

The condition of being physically capable without disability, often used in discussing inclusivity or the lack thereof.