Exhibit 14A-1 Aggregate Demand and Supply Model

question 21

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) 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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