Refer to the Graph Above

Multiple Choice

Refer to the graph above. Assume that the economy is in initial equilibrium where AD₁ intersects AS₁. If there is an unanticipated increase in aggregate demand, then according to new classical economics the economy will self-correct with a:

A) Movement from point B to point A
B) Movement from point A to point B
C) Shift from AS₁ to AS₂
D) Shift from AD₂ to AD₁