Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ {1 }$ . If
There is a decrease in aggregate demand to AD
$A D _ { 2 }$ , then, according to mainstream economists, if
Prices are ?exible and wages are not, this will result in an equilibrium at point
A) B.
B) C.
C) D.
D) E.

Question

Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ {1 }$ . If
There is a decrease in aggregate demand to AD
$A D _ { 2 }$ , then, according to mainstream economists, if
Prices are ?exible and wages are not, this will result in an equilibrium at point
A) B. 
B) C. 
C) D. 
D) E.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ {1 }$ . If
There is a decrease in aggregate demand to AD
$A D _ { 2 }$ , then, according to mainstream economists, if
Prices are ?exible and wages are not, this will result in an equilibrium at point
A) B. 
B) C. 
C) D. 
D) E.

Refer to the Graph AD1A D _ { 1 }AD1​ Intersects A

Refer to the Graph $A D _ { 1 }$ Intersects A