In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD1 to AD2, then
A. the new short-run equilibrium will be at point B.
B. the new long-run equilibrium will be at point B.
C. real Gross Domestic Product (GDP) per year will fall below Y1.
D. the new short-run equilibrium will be at point D.
Answer: A
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