Refer to the above graph. Assume that the economy is in initial equilibrium where AD₁ intersects AS₁. If there is a decrease in aggregate demand to AD₂, then according to mainstream economists, if prices and wages are not flexible, this will result in an equilibrium at point: A) E B) B C) C D) D

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The Answer of Refer to the above graph. Assume that the economy is in initial equilibrium where AD₁ intersects AS₁. If there is a decrease in aggregate demand to AD₂, then according to mainstream economists, if prices and wages are not flexible, this will result in an equilibrium at point: A) E B) B C) C D) D

Refer to the Above Graph