Refer to the diagram. Assume the economy is initially at point b1. With a time lag between price and nominal wage adjustments, an increase in aggregate demand will temporarily move the economy
From
A) $b _ { 2 } \text { to } b _ { 1 }$
B) $c _ { 1 } \text { to } b _ { 2 }$
C) $b _ { 1 } \text { to } c _ { 1}$
D) $b _ { 1 } \text { to } b _ { 2 }$

Question

Refer to the diagram. Assume the economy is initially at point b1. With a time lag between price and nominal wage adjustments, an increase in aggregate demand will temporarily move the economy
From
A) $b _ { 2 } \text { to } b _ { 1 }$ 
B) $c _ { 1 } \text { to } b _ { 2 }$ 
C) $b _ { 1 } \text { to } c _ { 1}$ 
D) $b _ { 1 } \text { to } b _ { 2 }$

Quizplus · Accepted Answer

The Answer of  Refer to the diagram. Assume the economy is initially at point b1. With a time lag between price and nominal wage adjustments, an increase in aggregate demand will temporarily move the economy
From
A) $b _ { 2 } \text { to } b _ { 1 }$ 
B) $c _ { 1 } \text { to } b _ { 2 }$ 
C) $b _ { 1 } \text { to } c _ { 1}$ 
D) $b _ { 1 } \text { to } b _ { 2 }$

Refer to the Diagram b2 to b1b _ { 2 } \text { to } b _ { 1 }b2​ to b1​

Refer to the Diagram $b _ { 2 } \text { to } b _ { 1 }$