Refer to the graph above. The economy is at point B₂, and then aggregate demand increases. In the short run, the economy will: A) Stay at point B₂ and remain there in the long run B) Move to point C₂ and in the long run move on to B₃. C) Move to point B₃ and in the long run move on to C₂. D) Move to point B₁ and in the long run move back to B₂.

Question

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The Answer of Refer to the graph above. The economy is at point B₂, and then aggregate demand increases. In the short run, the economy will: A) Stay at point B₂ and remain there in the long run B) Move to point C₂ and in the long run move on to B₃. C) Move to point B₃ and in the long run move on to C₂. D) Move to point B₁ and in the long run move back to B₂.

Refer to the Graph Above