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Figure 15-3 -As Shown in Figure 15-3,if People Behave According to Rational

Question 128

Multiple Choice

Figure 15-3
Figure 15-3 -As shown in Figure 15-3,if people behave according to rational expectations theory,an increase in the aggregate demand curve from AD₁ to AD₂ will cause the economy to move A) directly from E₁ to E₃ and then remain at E₃. B) directly from E₁ to E₂ and then remain at E₂. C) from E₁ to E₂ initially and then eventually move back to E₁. D) from E₁ to E₂ initially and then eventually move to E₃.
-As shown in Figure 15-3,if people behave according to rational expectations theory,an increase in the aggregate demand curve from AD₁ to AD₂ will cause the economy to move


A) directly from E₁ to E₃ and then remain at E₃.
B) directly from E₁ to E₂ and then remain at E₂.
C) from E₁ to E₂ initially and then eventually move back to E₁.
D) from E₁ to E₂ initially and then eventually move to E₃.

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