Figure 10-18 Beginning in Figure 10-18 from long-run equilibrium at point E₁, the aggregate demand curve shifts to AD₂. The economy's path to a new long-run equilibrium is represented by a movement from A) E₃ to E₁ to E₂. B) E₁ to E₃ to E₂. C) E₂ to E₁ to E₂. D) E₁ to E₂ to E₃.

Question

Quizplus · Accepted Answer

The Answer of Figure 10-18 Beginning in Figure 10-18 from long-run equilibrium at point E₁, the aggregate demand curve shifts to AD₂. The economy's path to a new long-run equilibrium is represented by a movement from A) E₃ to E₁ to E₂. B) E₁ to E₃ to E₂. C) E₂ to E₁ to E₂. D) E₁ to E₂ to E₃.

Figure 10-18 Beginning in Figure 10-18 from Long-Run Equilibrium