FIGURE 29-2 -Refer to Figure 29-2. the Movement of the Economy from Economy

FIGURE 29-2
-Refer to Figure 29-2. The movement of the economy from E1 to E2 was likely caused by

A) an increase in the price level.
B) a positive supply shock induced by new technology.
C) a negative demand shock due to government cut-backs.
D) a negative supply shock due to a rise in input prices.
E) the monetary validation of an initial demand shock by the central bank, combined with ongoing inflation expectations.