Use the Following to Answer Questions

question 7

Multiple Choice

Use the following to answer questions :
Exhibit: Shift in Aggregate Demand
-(Exhibit: Shift in Aggregate Demand) In this graph, initially the economy is at point E, with the price P₀ and output Y. Aggregate demand is given by curve AD₀, and SRAS and LRAS represent, respectively, short-run and long-run aggregate supply. Now assume that the aggregate demand curve shifts so that it is represented by AD₂. The economy moves first to point ______ and then, in the long run, to point ______.

• A) A; D
• B) D; A
• C) A; B
• D) B; A

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Definitions:

Surround And Constrict

A tactical maneuver designed to encircle and apply pressure on a specific target or area, reducing its mobility or effectiveness.

Forts

Military structures designed for defense, typically fortified buildings or strategic positions used to protect against enemy attacks.

Union Forces

The armies and military units that fought for the Northern states during the American Civil War.

Tennessee

A U.S. state located in the southeastern region, known for its contributions to the genres of country and blues music.