-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 the

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