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    Macroeconomics for Today
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    Exam 23: the Self-Correcting Aggregate Demand and Supply Model
  5. Question
    Based on Exhibit 1, When the Aggregate Demand Curve Shifts
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Based on Exhibit 1, When the Aggregate Demand Curve Shifts

Question 25

Question 25

Multiple Choice

Based on Exhibit 1, when the aggregate demand curve shifts to the position AD2 and the economy is operating at point E2, the economy's position of long-run equilibrium corresponds to point:


A) E1.
B) E2.
C) E3.
D) E1 or E3.

Correct Answer:

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