Use the Figure Below to Answer the Following Question

Multiple Choice

Use the figure below to answer the following question.
Figure 15-5

-Refer to Figure 15-5.If the economy were currently operating at point A in the exhibit and expansionary policy were enacted that would shift AD₁ to AD₂,

A) if people have adaptive expectations,the economy would move to point B in the short run.
B) if people have rational expectations,the economy would move to point C in the short run.
C) in the long run,the economy would move to point C regardless of how expectations are formed.
D) all of the above are true.