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Figure 12-2 -Refer to Figure 12-2. Assume That the Economy Is Initially

Question 89

Multiple Choice

Figure 12-2 Figure 12-2 -Refer to Figure 12-2. Assume that the economy is initially at Y<sub>r</sub>. A nonintervention policy Would return the economy to its potential output by A) allowing the short-run aggregate supply to shift to the right. B) allowing the short-run aggregate supply to shift to the left. C) allowing the aggregate demand to shift to the left. D) allowing the aggregate demand to shift to the right.
-Refer to Figure 12-2. Assume that the economy is initially at Yr. A nonintervention policy
Would return the economy to its potential output by


A) allowing the short-run aggregate supply to shift to the right.
B) allowing the short-run aggregate supply to shift to the left.
C) allowing the aggregate demand to shift to the left.
D) allowing the aggregate demand to shift to the right.

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