Exhibit 19-1

-Refer to Exhibit 19-1. If a decrease in aggregate demand from AD1 to AD0 is fully anticipated, the economy will move from point E to point ____ in the short run.
A)A
B)B
C)F
D)None of the above

Question

​Exhibit 19-1
​  ​
​
-Refer to Exhibit 19-1. If a decrease in aggregate demand from AD1 to AD0 is fully anticipated, the economy will move from point E to point ____ in the short run.
A)​A 
B)​B 
C)​F 
D)​None of the above

Quizplus · Accepted Answer

If the decrease in aggregate demand is fully anticipated, the economy will adjust in the short run to a new equilibrium point on the short-run aggregate supply curve, which is typically represented by point A in such diagrams.

​Exhibit 19-1 ​ ​

Exhibit 19-1