Refer to the following figure when answering the following questions.
Figure 14.3: AS/AD Model
-Consider Figure 14.3. If the economy begins in its long-run equilibrium and there is an increase in the economy's financial friction, the economy would move from point ________ to point ________.
A) c; d
B) a; d
C) b; c
D) d; a
E) Neither curve would shift.

Question

Refer to the following figure when answering the following questions.
Figure 14.3: AS/AD Model 
-Consider Figure 14.3. If the economy begins in its long-run equilibrium and there is an increase in the economy's financial friction, the economy would move from point ________ to point ________.
A) c; d 
B) a; d 
C) b; c 
D) d; a 
E) Neither curve would shift.

Quizplus · Accepted Answer

The Answer of Refer to the following figure when answering the following questions.
Figure 14.3: AS/AD Model 
-Consider Figure 14.3. If the economy begins in its long-run equilibrium and there is an increase in the economy's financial friction, the economy would move from point ________ to point ________.
A) c; d 
B) a; d 
C) b; c 
D) d; a 
E) Neither curve would shift.

Refer to the Following Figure When Answering the Following Questions