-Based on the Diagram Above,starting from a Long-Run Equilibrium at Point

Multiple Choice

-Based on the diagram above,starting from a long-run equilibrium at point C,a tax increase that decreases aggregate demand from ADI¹ to ADI will lead to a short-run equilibrium at point ________,and eventually to a long-run equilibrium at point ________,due to falling inflation and the lowering of real interest rates by the Bank of Canada.

A) D;B
B) D;C
C) D;A
D) B;C
E) B;B