Figure 14-1 -Refer to Figure 14-1. If the Economy Starts at C

Multiple Choice

Figure 14-1
-Refer to Figure 14-1. If the economy starts at C and there is an increase in aggregate demand, what happens to the economy in the long run?

A) It moves to D and then back to C.
B) It moves to B and then to A.
C) It moves to D and then to A.
D) It moves to B and then back to C.