Figure 17-3
-Refer to Figure 17-3. Starting from c and 3, where does an increase in aggregate demand move the economy to, in the short run and the long run?
A) a and 1 in the short run, b and 2 in the long run
B) b and 2 in the short run, a and 1 in the long run
C) d and 4 in the short run, e and 5 in the long run
D) d and 2 in the short run, a and 5 in the long run

Question

Figure 17-3 
-Refer to Figure 17-3. Starting from c and 3, where does an increase in aggregate demand move the economy to, in the short run and the long run?
A) a and 1 in the short run, b and 2 in the long run 
B) b and 2 in the short run, a and 1 in the long run 
C) d and 4 in the short run, e and 5 in the long run 
D) d and 2 in the short run, a and 5 in the long run

Quizplus · Accepted Answer

The Answer of Figure 17-3 
-Refer to Figure 17-3. Starting from c and 3, where does an increase in aggregate demand move the economy to, in the short run and the long run?
A) a and 1 in the short run, b and 2 in the long run 
B) b and 2 in the short run, a and 1 in the long run 
C) d and 4 in the short run, e and 5 in the long run 
D) d and 2 in the short run, a and 5 in the long run

Figure 17-3 -Refer to Figure 17-3. Starting from C and 3, Where