Exhibit 10A-6 Aggregate demand and supply model
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?Beginning from a point of short-run equilibrium at point E2 in Exhibit 10A-6, the economy's movement to a new position of long-run equilibrium from that point would best be described as:
A. ?a movement along the AD2 curve caused by a shift in the SRAS1 curve to SRAS2.
B. a movement along the SRAS2 curve with a shift in the AD2 curve.
C. ?a shift in the LRAS curve to an intersection at E3.
D. ? no shift of any kind.
Answer: A
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