-Refer to Exhibit 16

Multiple Choice

-Refer to Exhibit 16.7, which reflects the relationship between real GDP and the price level. If the economy is initially at point c and aggregate demand is stable, in the long run, the economy will _____

A) move toward point a.
B) move toward point b.
C) stay at point c.
D) move toward point d.
E) move toward point f.