The diagram shows the aggregate demand (AD) and long-run aggregate supply (LRAS) curves for a country. X is the original equilibrium position.
In one year, over one million foreign workers left the country and at the same time the country’s currency appreciated against the currencies of its major trading partners.
What will be the most likely new equilibrium position for this country?
1 )
A
2 )
B
C
4 )
D
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