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Refer to the Figure and Assume the Economy Initially Is

Question 13

Multiple Choice

Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, a fully anticipated decrease in aggregate demand from AD<sub>2</sub> to AD<sub>3</sub> would move the economy A) directly from a to h. B) from a to g to h. C) directly from a to d. D) from a to c to h.
Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, a fully anticipated decrease in aggregate demand from AD2 to AD3 would move the economy


A) directly from a to h.
B) from a to g to h.
C) directly from a to d.
D) from a to c to h.

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