(Figure: Aggregate Supply and Demand Shifts) the Economy Is Originally

Multiple Choice

(Figure: Aggregate Supply and Demand Shifts) The economy is originally at its long-run equilibrium, SRAS₀ and AD₀. Government policymakers signal that they intend to reduce aggregate demand from AD₀ to AD₁. If we assume that individuals have rational expectations, then the shift from SRAS₀ to SRAS₁ will happen

A) almost immediately.
B) after a long lag.
C) only after the government finishes fully implementing its policy.
D) too slowly to affect the price level.