​ Exhibit 10A-1 Aggregate Demand and Supply Model

question 27

Multiple Choice

​ Exhibit 10A-1 Aggregate demand and supply model

​ Beginning in Exhibit 10A-1 from long-run equilibrium at point E₁, the aggregate demand curve shifts to AD₂ . The economy's path to a new long-run equilibrium is represented by a movement from:

• A) ​E ₃ to E ₁ to E ₂ .
• B) ​E ₁ to E ₃ to E ₂ .
• C) ​E ₂ to E ₁ to E ₂ .
• D) ​E ₁ to E ₂ to E ₃ .

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