In the Figure Above, from Initial Point E, Suppose AD1

question 35

Multiple Choice

In the figure above, from initial point E, suppose AD1 shifts to AD0. Under the assumptions of classical macroeconomics, we would

• A) stay at point E.
• B) almost immediately move to and then stay at point A.
• C) almost immediately move to and then stay at point F.
• D) almost immediately move to and then stay at point B.

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