?Exhibit 10A-1 Aggregate demand and supply model
?Beginning from short-run equilibrium at point E2 in Exhibit 10A-1, the economy's movement to a new position of long-run equilibrium would best be described as:
A. ?a movement along the AD2 curve with a shift in the SRAS1 curve.
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 E1.
D. ?no shift of any kind.
Answer: A
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