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Exhibit 10A-6 Aggregate Demand and Supply Model

Question 137

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Exhibit 10A-6 Aggregate demand and supply model
​
Exhibit 10A-6 Aggregate demand and supply model ​ ​ Beginning from a point of short-run equilibrium at point E<sub>2</sub> in Exhibit 10A-6, the economy's movement to a new position of long-run equilibrium from that point would best be described as: A) ​a movement along the AD<sub> 2 </sub> curve caused by a shift in the SRAS<sub> 1 </sub> curve to SRAS<sub> 2 </sub>. B)  a movement along the SRAS<sub> 2 </sub> curve with a shift in the AD<sub> 2 </sub> curve. C) ​a shift in the LRAS curve to an intersection at E<sub> 3 </sub>. D) ​ no shift of any kind.
​ Beginning from a point of short-run equilibrium at point E2 in Exhibit 10A-6, the economy's movement to a new position of long-run equilibrium from that point would best be described as:


A) ​a movement along the AD 2 curve caused by a shift in the SRAS 1 curve to SRAS 2 .
B)  a movement along the SRAS 2 curve with a shift in the AD 2 curve.
C) ​a shift in the LRAS curve to an intersection at E 3 .
D) ​ no shift of any kind.

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