Figure 10-18 Beginning from a Point of Short-Run Equilibrium

Multiple Choice

Figure 10-18 Beginning from a point of short-run equilibrium at point E₂ in Figure 10-18, 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 with 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.