Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ { 1 }$ . If
There is an unanticipated increase in aggregate demand, then according to new classical
Economics, the economy will self-correct with a
A) movement from point B to point A.
B) movement from point A to point B.
C) shift from A $\mathrm { AS } _ { 1 } \text { to } A S _ { 2 }$
D) shift from AD $A D _ { 2 } \text { to } A D _ { 1 }$

Question

Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ { 1 }$ . If
There is an unanticipated increase in aggregate demand, then according to new classical
Economics, the economy will self-correct with a
A) movement from point B to point A. 
B) movement from point A to point B. 
C) shift from A $\mathrm { AS } _ { 1 } \text { to } A S _ { 2 }$ 
D) shift from AD $A D _ { 2 } \text { to } A D _ { 1 }$

Quizplus · Accepted Answer

The Answer of  Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ { 1 }$ . If
There is an unanticipated increase in aggregate demand, then according to new classical
Economics, the economy will self-correct with a
A) movement from point B to point A. 
B) movement from point A to point B. 
C) shift from A $\mathrm { AS } _ { 1 } \text { to } A S _ { 2 }$ 
D) shift from AD $A D _ { 2 } \text { to } A D _ { 1 }$

Refer to the Graph AD1A D _ { 1 }AD1​ Intersects A

Refer to the Graph $A D _ { 1 }$ Intersects A