Exhibit 14A-6 Aggregate Demand and Supply Model

Multiple Choice

Exhibit 14A-6 Aggregate demand and supply model

-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 AD₂ curve caused by 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.