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Exhibit 14A-6 Aggregate Demand and Supply Model

Question 82

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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 SRAS1 curve with a shift in the aggregate demand 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 AD 2 curve caused by a shift in the SRAS 1 curve to SRAS 2 .
B) a movement along the SRAS1 curve with a shift in the aggregate demand curve.
C) a shift in the LRAS curve to an intersection at E 3 .
D)  no shift of any kind.

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