?Exhibit 10A-1 Aggregate demand and supply model

Based on Exhibit 10A-1, when the aggregate demand curve shifts to the position AD2 and the economy is operating at point E2, the economy's position of long-run equilibrium corresponds to point: 

A. E1.
B. E2.
C. E3.
D. E1 or E3.


Answer: C

Economics

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