Figure 9-1
-In Figure 9-1, which of the following correctly labels the curves in the aggregate demand/aggregate supply model?
A)(1) is LRAS, (2) is SRAS, and (3) is AD.
B)(1) is SRAS, (2) is LRAS, and (3) is AD.
C)(1) is AD, (2) is SRAS, and (3) is LRAS.
D)(1) is LRAS, (2) is AD, and (3) is SRAS.

Question

Figure 9-1 
-In Figure 9-1, which of the following correctly labels the curves in the aggregate demand/aggregate supply model?
A)(1) is LRAS, (2) is SRAS, and (3) is AD. 
B)(1) is SRAS, (2) is LRAS, and (3) is AD. 
C)(1) is AD, (2) is SRAS, and (3) is LRAS. 
D)(1) is LRAS, (2) is AD, and (3) is SRAS.

Quizplus · Accepted Answer

In the aggregate demand/aggregate supply model, LRAS is typically vertical, SRAS is upward sloping, and AD is downward sloping.

Figure 9-1 -In Figure 9-1, Which of the Following Correctly Labels the Correctly