Multiple Choice
Refer to the following figure when answering the following questions.
Figure 14.3: AS/AD Model
-Consider Figure 14.3. 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 point ________.
A) c; d
B) a; d
C) b; c
D) d; a
E) Neither curve would shift.
Correct Answer:

Verified
Correct Answer:
Verified
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