Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, an unanticipated decrease in aggregate demand from AD₂ to AD₃ would move the economy A) directly from a to h. B) from a to g to h. C) directly from a to d. D) from a to c to h.

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The Answer of Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, an unanticipated decrease in aggregate demand from AD₂ to AD₃ would move the economy A) directly from a to h. B) from a to g to h. C) directly from a to d. D) from a to c to h.

Refer to the Figure and Assume the Economy Initially Is