Beginning in Exhibit 14A-1 from long-run equilibrium at point E₁,the aggregate demand curve shifts to AD₂ .The economy's path to a new long-run equilibrium is represented by a movement from:
A) E₃ to E₁ to E₂.
B) E₁ to E₃ to E₂.
C) E₂ to E₁ to E₂.
D) E₁ to E₂ to E₃.

Question

Quizplus · Accepted Answer

The Answer of Beginning in Exhibit 14A-1 from long-run equilibrium at point E₁,the aggregate demand curve shifts to AD₂ .The economy's path to a new long-run equilibrium is represented by a movement from:
A) E₃ to E₁ to E₂.
B) E₁ to E₃ to E₂.
C) E₂ to E₁ to E₂.
D) E₁ to E₂ to E₃.

Beginning in Exhibit 14A-1 from Long-Run Equilibrium at Point E₁,the