Refer to the Following Figure When Answering the Following Questions

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 13.5: AS/AD Model
-Consider Figure 13.5. If the Fed sets a lower inflation target, under rational expectations, the economy moves from point ________ to point ________.

A) c; a instantly
B) a; c slowly
C) c; d instantly
D) c; b slowly
E) b; a instantly