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Exhibit 14A-6  Aggregate Demand and Supply Model Beginning from a Point

Question 76

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Exhibit 14A-6  Aggregate demand and supply model Exhibit 14A-6  Aggregate demand and supply model Beginning from a point of short-run equilibrium at point E<sub>2</sub> in Exhibit 14A-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 14A-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 AD2 curve caused by a shift in the SRAS1 curve to SRAS2.
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 E3.
D) no shift of any kind.

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