In its latest budget, a government cut total expenditure but raised the amount allocated to training in order to improve the productivity of the workforce. The starting equilibrium is indicated by X on the aggregate demand (AD) and aggregate supply (AS) diagram. After these changes, where would the equilibrium point be?
- APoint corresponding to AD2 and AS2 (label A on diagram)
- BPoint corresponding to AD2 and AS3 (label B on diagram)
- CPoint corresponding to AD3 and AS2 (label C on diagram)
- DPoint corresponding to AD3 and AS3 (label D on diagram)