Suppose the economy has moved from E₂ to E₁- If there then no monetary validation, the adjustment process will lead to a new equilibrium at OA. E₂. OB. E3. ⒸC. E₁. OD. Eo. OE. E4- Price Level LEA E₂ Ea y* Real GDP E1 E3 AS₁ ASO AD2 AD₁ ADO Q ✔

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.