In the Above Figure, the Economy Initially Is at Point

Multiple Choice

In the above figure, the economy initially is at point A and then an increase in the quantity of money moves the economy to point D. If the quantity of money remains constant, the economy will adjust with

A) aggregate demand shifting back to AD₀.
B) short- run aggregate supply shifting leftward to SAS₁.
C) short- run aggregate supply shifting leftward to SAS₂.
D) aggregate demand shifting to AD₂.