Now suppose that the decrease in foreign spending on domestically produced goods was entirely
anticipated by firms and workers. This means the public fully anticipates the leftward shift of the
aggregate dermand curve (from AD1; to AD2). According to rational-expectations adherents, the
anticipated change in aggregate demand will cause the economy to move in which direction?
a. From point F to point R and, eventually, from point R to point C
b. From point F to point R, before returning to point F
c. Directly from point F to point C
d. From point F to point T, before returning to paint F
