Exhibit 14A-1 Aggregate Demand and Supply Model

Multiple Choice

Exhibit 14A-1 Aggregate demand and supply model

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) E ₃ to E ₁ to E ₂ .
B) E ₁ to E ₃ to E ₂ .
C) E ₂ to E ₁ to E ₂ .
D) E ₁ to E ₂ to E ₃ .