Figure 17-A
-Refer to Figure 17-1.If an increase in aggregate demand AD₀ to AD₁ is unanticipated, the economy will move from point A to point ____ in the short run.

Question

Figure 17-A -Refer to Figure 17-1.If an increase in aggregate demand AD₀ to AD₁ is unanticipated, the economy will move from point A to point ____ in the short run. A)A B)B C)E

Quizplus · Accepted Answer

In the short run, an unanticipated increase in aggregate demand will move the economy from point A to point F, as prices and output increase before any long-term adjustments occur.

Figure 17-A -Refer to Figure 17-1.If an Increase in Aggregate Demand AD0

Figure 17-A -Refer to Figure 17-1.If an Increase in Aggregate Demand AD₀