Exhibit 14A-6 Aggregate Demand and Supply Model

question 82

Multiple Choice

Exhibit 14A-6 Aggregate demand and supply model

Beginning from a point of short-run equilibrium at point E₂ in Exhibit 14A-6, the economy's movement to a new position of long-run equilibrium from that point would best be described as:

• A) a movement along the AD ₂ curve caused by a shift in the SRAS ₁ curve to SRAS ₂ .
• B) a movement along the SRAS1 curve with a shift in the aggregate demand curve.
• C) a shift in the LRAS curve to an intersection at E ₃ .
• D) no shift of any kind.

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