Figure: Aggregate Supply and Demand Shifts (Figure: )The Economy

Multiple Choice

Figure: Aggregate Supply and Demand Shifts (Figure: ) The economy is originally at its long-run equilibrium,SRAS₀ and AD₀.Government policymakers signal that they intend to reduce aggregate demand from AD₀ to AD₁.If we assume that individuals have rational expectations,then the speed of the shift from SRAS₀ to SRAS₁ will happen:

A) almost immediately.
B) after a long lag.
C) only after the government finishes fully implementing its policy.
D) too slowly to affect the price level.