Exhibit 14A-6 Aggregate demand and supply model

-Beginning in Exhibit 14A-6 from long-run equilibrium at point E₁,the aggregate demand curve shifts to AD₂.The economy's path to a new long-run equilibrium is represented by a movement from:
A) E₃ to E₁ to E₂.
B) E₁ to E₃ to E₂.
C) E₂ to E₁ to E₂.
D) E₁ to E₂ to E₃.

Question

Exhibit 14A-6 Aggregate demand and supply model
 
-Beginning in Exhibit 14A-6 from long-run equilibrium at point E₁,the aggregate demand curve shifts to AD₂.The economy's path to a new long-run equilibrium is represented by a movement from:
A) E₃ to E₁ to E₂. 
B) E₁ to E₃ to E₂. 
C) E₂ to E₁ to E₂. 
D) E₁ to E₂ to E₃.

Quizplus · Accepted Answer

The Answer of Exhibit 14A-6 Aggregate demand and supply model
 
-Beginning in Exhibit 14A-6 from long-run equilibrium at point E₁,the aggregate demand curve shifts to AD₂.The economy's path to a new long-run equilibrium is represented by a movement from:
A) E₃ to E₁ to E₂. 
B) E₁ to E₃ to E₂. 
C) E₂ to E₁ to E₂. 
D) E₁ to E₂ to E₃.

Exhibit 14A-6 Aggregate Demand and Supply Model