Figure 17-3 -In Figure 17-3 Above,suppose We Are Working Under the Assumption

Multiple Choice

Figure 17-3

-In Figure 17-3 above,suppose we are working under the assumption of the Lucas model.It is the year of the presidential election,and fiscal policy becomes more expansionary.If every firm is convinced that its price increase is being duplicated across the economy,we would picture this as a movement between points

A) A and C.
B) A and B.
C) D and B.
D) D and A.
E) A and D.