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Beginning in Exhibit 6 from Long-Run Equilibrium at Point E1

Question 24

Multiple Choice

Beginning in Exhibit 6 from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2. The economy's path to a new long-run equilibrium is represented by a movement from:


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

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