Refer to the Graph $B _ { 2 }$ an Increase in Aggregate
Demand with a Corresponding Adjustment

Multiple Choice

Refer to the graph. Assume the economy is at the initial position of $B _ { 2 }$ . An increase in aggregate
Demand with a corresponding adjustment in in?ation expectations and wages will tend to

A) move the economy to point $B _ { 3 }$
B) move the economy to point $C _ { 2 }$
C) move the economy to point $C _ { 1 } .$
D) have no effect in shifting the economy from point $B _ { 2 }$