Exhibit 14A-1 Aggregate Demand and Supply Model

Exhibit 14A-1 Aggregate demand and supply model

Beginning from short-run equilibrium at point E₂ in Exhibit 10A-1, the economy's movement to a new position of long-run equilibrium would best be described as:

A) a movement along the AD ₂ curve with a shift in the SRAS ₁ curve.
B) a movement along the SRAS ₂ curve with a shift in the AD ₂ curve.
C)  a shift in the LRAS curve to an intersection at E ₁ .
D) no shift of any kind.