Exhibit 9-4 -Refer to Exhibit 9-4.Assume the Economy Is Self-Regulating and Currently

Multiple Choice

Exhibit 9-4

-Refer to Exhibit 9-4.Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P₂.If something happens that shifts the AD curve to the AD₁ position,the economy will eventually settle down at a long-run equilibrium point of __________.

A) P₅, Q₃.
B) P₄, Q₄.
C) P₃, Q₃.
D) P₃, Q₅.
E) P₄, Q₂.