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Refer to the Graph AD1A D _ { 1 } Intersects A

Question 49

Multiple Choice

   Refer to the graph. Assume that the economy is in initial equilibrium where AD  A D _ { 1 }  intersects A  A S _ { 1 }  . If There is an unanticipated increase in aggregate demand, then according to new classical Economics, the economy will self-correct with a A)  movement from point B to point A. B)  movement from point A to point B. C)  shift from A  \mathrm { AS } _ { 1 } \text { to } A S _ { 2 }  D)  shift from AD  A D _ { 2 } \text { to } A D _ { 1 } Refer to the graph. Assume that the economy is in initial equilibrium where AD AD1A D _ { 1 } intersects A
AS1A S _ { 1 } . If
There is an unanticipated increase in aggregate demand, then according to new classical
Economics, the economy will self-correct with a


A) movement from point B to point A.
B) movement from point A to point B.
C) shift from A AS1 to AS2\mathrm { AS } _ { 1 } \text { to } A S _ { 2 }
D) shift from AD AD2 to AD1A D _ { 2 } \text { to } A D _ { 1 }

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