Refer to the diagram. Rational expectations theory says that a fully anticipated shift in aggregate demand from AD₁ to AD₂ will A) move the economy from a to b to c. B) move the economy directly from a to c. C) move the economy from a to a new equilibrium at b. D) shift the AS curve to the right.

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The Answer of Refer to the diagram. Rational expectations theory says that a fully anticipated shift in aggregate demand from AD₁ to AD₂ will A) move the economy from a to b to c. B) move the economy directly from a to c. C) move the economy from a to a new equilibrium at b. D) shift the AS curve to the right.

Refer to the Diagram