Figure 9.3 Alt text for Figure 9.3: In figure 9.3, a graph comparing real GDP and price level.
Long description for Figure 9.3: The x-axis is labelled, real GDP, with 0 at the vertex, and the y-axis is labelled, price level.2 lines are shown; SRAS1 and SRAS2.Line SRAS1 begins a little above the vertex and slopes up to the top right corner.Line SRAS2 follows the same slope as line SRAS1, but is plotted to the right.Points A and B are plotted on line SRAS1.Point A is near the left end of the line and point B is near the center of the line.
-Refer to Figure 9.3.Ceteris paribus, an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from

Question

Figure 9.3

Alt text for Figure 9.3: In figure 9.3, a graph comparing real GDP and price level.
Long description for Figure 9.3: The x-axis is labelled, real GDP, with 0 at the vertex, and the y-axis is labelled, price level.2 lines are shown; SRAS1 and SRAS2.Line SRAS1 begins a little above the vertex and slopes up to the top right corner.Line SRAS2 follows the same slope as line SRAS1, but is plotted to the right.Points A and B are plotted on line SRAS1.Point A is near the left end of the line and point B is near the center of the line.
-Refer to Figure 9.3.Ceteris paribus, an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from

Quizplus · Accepted Answer

When workers and firms adjust to having previously overestimated the price level, they will adjust their expectations, leading to an increase in short-run aggregate supply, represented by a shift from SRAS₁ to SRAS₂.

Figure 93 Alt Text for Figure 9