Exhibit 15-4

-Refer to the graph in the exhibit.Suppose the economy is initially at point c, and aggregate demand is stable.What will the economy do?
A) The economy will move toward point a.
B) The economy will move toward point b.
C) The economy will stay at point c.
D) The economy will move toward point d.

Question

Exhibit 15-4
 
-Refer to the graph in the exhibit.Suppose the economy is initially at point c, and aggregate demand is stable.What will the economy do?  
A) The economy will move toward point a. 
B) The economy will move toward point b. 
C) The economy will stay at point c. 
D) The economy will move toward point d.

Quizplus · Accepted Answer

Since aggregate demand is stable, there is no external force causing the economy to shift. Therefore, the economy will remain at point c.

Exhibit 15-4 -Refer to the Graph in the Exhibit.Suppose the Economy Is