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Refer to the Diagram and Assume the Economy Initially Is

Question 224

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Refer to the diagram and assume the economy initially is in equilibrium at point a. In the mainstream view, a decline in aggregate demand from AD<sub>1</sub> to AD<sub>2</sub> would likely move the economy A) directly from a to d. B) directly from a to b. C) from a to c, then quickly from c to d. D) from a to c, then eventually from c to b.
Refer to the diagram and assume the economy initially is in equilibrium at point a. In the mainstream view, a decline in aggregate demand from AD1 to AD2 would likely move the economy


A) directly from a to d.
B) directly from a to b.
C) from a to c, then quickly from c to d.
D) from a to c, then eventually from c to b.

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