Refer to the graph above. The ratchet effect would suggest that:
A) If AD1 shifts to AD2, the economy would move to point b
B) If AD1 shifts to AD2, the economy would move to point c
C) If AD2 shifts to AD1, the economy would move to point c
D) If AD2 shifts to AD1, the economy would move to point b
Correct Answer:
Verified
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