-Refer to the Above Figure

Multiple Choice

-Refer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS₁ and AD₁. Now there is an increase in labor productivity which increases total planned production at any given price level and aggregate demand remains stable. The resulting change in the economy's long-run equilibrium position would be represented by a

A) movement from B to D.
B) movement from C to D.
C) movement from C to B.
D) movement from A to B.