Beginning from Short-Run Equilibrium at Point E₂ in Exhibit 1

Multiple Choice

Beginning from short-run equilibrium at point E₂ in Exhibit 1, the economy's movement to a new position of long-run equilibrium would best be described as:

A) a movement along the AD₂ curve with a shift in the SRAS₁ curve.
B) a movement along the SRAS₂ curve with a shift in the AD₂ curve.
C) a shift in the LRAS curve to an intersection at E₁.
D) no shift of any kind.