Exhibit 14A-1  Aggregate Demand and Supply Model Beginning in Exhibit

question 27

Multiple Choice

Exhibit 14A-1  Aggregate demand and supply model Beginning in Exhibit 14A-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) E₃ to E₁ to E₂.
• B) E₁ to E₃ to E₂.
• C) E₂ to E₁ to E₂.
• D) E₁ to E₂ to E₃.

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