Figure 10-18 As shown in Figure 10-18, the economy's point of short-run equilibrium, given by the shift of the aggregate demand curve from AD₁ to AD₂, is A) E₁. B) E₂. C) E₃. D) unable to be determined.

Question

Quizplus · Accepted Answer

The short-run equilibrium point moves from E₁ to E₂ due to the shift of the aggregate demand curve to the right. Therefore, choice B is the correct answer.

Figure 10-18 as Shown in Figure 10-18, the Economy's