Refer to the Following Figure When Answering

Multiple Choice

Refer to the following figure when answering
Figure 14.3: AS/AD Model
-Consider Figure 14.3 above. If the economy begins in its long-run equilibrium and there is an increase in the economy's financial friction, the economy would move from point ________ to ________.

A) c; d
B) a; d
C) b; c
D) d; a
E) Neither curve would shift.