According to the Figure of ADAS Curves and Assuming the Country

Multiple Choice

According to the figure of ADAS curves and assuming the country begins on AD₁ and SRAS₁, what will happen in the short and long run if the government begins a sustained period of increased spending?

A) The economy moves from point C to E to B.
B) The economy moves from point D to C to A.
C) The economy moves from point D to C to E.
D) The economy moves from point C to A to B.