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Exhibit 14A-1  Aggregate Demand and Supply Model Beginning in Exhibit

Question 27

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Exhibit 14A-1  Aggregate demand and supply model Exhibit 14A-1  Aggregate demand and supply model Beginning in Exhibit 14A-1 from long-run equilibrium at point E<sub>1</sub>, the aggregate demand curve shifts to AD<sub>2</sub> . The economy's path to a new long-run equilibrium is represented by a movement from: A) E<sub>3</sub> to E<sub>1</sub> to E<sub>2</sub>. B) E<sub>1</sub> to E<sub>3</sub> to E<sub>2</sub>. C) E<sub>2</sub> to E<sub>1</sub> to E<sub>2</sub>. D) E<sub>1</sub> to E<sub>2</sub> to E<sub>3</sub>. Beginning in Exhibit 14A-1 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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