Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, a fully anticipated decrease in aggregate demand from AD₂ to AD₃ would move the economy A) directly from a to h. B) from a to g to h. C) directly from a to d. D) from a to c to h.

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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 decrease in aggregate demand from AD₂ to AD₃ would move the economy A) directly from a to h. B) from a to g to h. C) directly from a to d. D) from a to c to h.

Refer to the Figure and Assume the Economy Initially Is