Multiple Choice
Refer to the graph. Assume that the economy is in initial equilibrium where AD intersects A
. If
There is an unanticipated increase in aggregate demand and the economy self-corrects, then the
Adaptive-expectations adjustment path would go from point
A) A directly to B.
B) A to B to C.
C) B to A to D.
D) A to B to C to D.
Correct Answer:

Verified
Correct Answer:
Verified
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