Exhibit 14A-5 Macro AD-AS Model

question 66

Multiple Choice

Exhibit 14A-5 Macro AD-AS Model

-Beginning in Exhibit 14A-5 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) E₁ to E₂ to E₃.
• B) E₃ to E₂ to E₂.
• C) E₁ to E₃ to E₂.
• D) E₂ to E₁ to E₂.

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