Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, a fully anticipated increase in aggregate demand from AD₂ to AD₁ would move the economy A) directly from a to d. B) from a to b to d. C) from a to e to d. D) directly from a to f.

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The Answer of Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, a fully anticipated increase in aggregate demand from AD₂ to AD₁ would move the economy A) directly from a to d. B) from a to b to d. C) from a to e to d. D) directly from a to f.

Refer to the Figure and Assume the Economy Initially Is