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According to the Figure of ADAS Curves and Assuming the Country

Question 214

Multiple Choice

According to the figure of ADAS curves and assuming the country begins on AD1 and SRAS1, what will happen in the short and long run if the government begins a sustained period of increased spending? According to the figure of ADAS curves and assuming the country begins on AD<sub>1</sub> and SRAS<sub>1</sub>, what will happen in the short and long run if the government begins a sustained period of increased spending?   A)  The economy moves from point C to E to B. B)  The economy moves from point D to C to A. C)  The economy moves from point D to C to E. D)  The economy moves from point C to A to B.


A) The economy moves from point C to E to B.
B) The economy moves from point D to C to A.
C) The economy moves from point D to C to E.
D) The economy moves from point C to A to B.

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