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Refer to the Above Graph

Question 114

Multiple Choice

Refer to the above graph.The economy is at point B<sub>2</sub>, and aggregate demand increases.In the short run, the economy will: A) stay at point B<sub>2</sub>. B) move to point C<sub>2</sub> and in the long run to B<sub>3</sub>. C) move to point B<sub>3</sub> and in the long run to C<sub>2</sub>. D) move to point B<sub>1</sub> and in the long run to B<sub>1</sub>. Refer to the above graph.The economy is at point B2, and aggregate demand increases.In the short run, the economy will:


A) stay at point B2.
B) move to point C2 and in the long run to B3.
C) move to point B3 and in the long run to C2.
D) move to point B1 and in the long run to B1.

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