New classical economists say that a fully anticipated decrease in aggregate demand Multiple Choice ( 8 01:58:33 shifts the long-run aggregate supply curve to the right. eBook shifts the long-run aggregate supply curve to the left. moves the economy down along its vertical long-run aggregate supply curve. eventually results in a self-correcting increase in aggregate demand. ASLR Price Level ( 8 01:56:11 AD -AD eBook Q, Q2 Real Domestic Output Refer to the graph. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is an unanticipated increase in aggregate demand and the economy self-corrects, then the adaptive-expectations adjustment path would go from point Multiple Choice o A directly to B. o O A to в to c. A to B to C. o B to A to D. o A to B to C to D.
