Exhibit 14A-1 Aggregate Demand and Supply Model

question 91

Multiple Choice

Exhibit 14A-1 Aggregate demand and supply model

Based on Exhibit 14A-1, when the aggregate demand curve shifts to the position AD₂ and the economy is operating at point E₂, the economy's position of long-run equilibrium corresponds to point:

• A) E ₁ .
• B) E ₂ .
• C) E ₃ .
• D) E ₁ or E ₃ .