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

Question 226

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 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. 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 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.

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