Exhibit 14A-5 Macro AD-AS Model

Exhibit 14A-5 Macro AD-AS Model

-Beginning in Exhibit 14A-5 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) E₁ to E₂ to E₃.
B) E₃ to E₂ to E₂.
C) E₁ to E₃ to E₂.
D) E₂ to E₁ to E₂.