Exhibit 9-1

-Refer to Exhibit 9-1.The economy is currently producing Q₁.If an economist believes the economy can move itself without government intervention to Q_N,then he believes that the

Question

Exhibit 9-1 -Refer to Exhibit 9-1.The economy is currently producing Q₁.If an economist believes the economy can move itself without government intervention to Q_N,then he believes that the

Quizplus · Accepted Answer

If the economy is currently at point S1U1B1 and the economist believes it can move to point S1U1B1N without government intervention, then it means that the economy has the potential to increase its production in the short run. This would shift the SRAS curve to the right, as firms are able to produce more at the same prices due to factors like lower costs or increased productivity. This would result in a new short-run equilibrium at point A, where both the AD and SRAS curves intersect. However, it is not necessary for the LRAS curve to shift in this scenario.

Exhibit 9-1 -Refer to Exhibit 9-1.The Economy Is Currently Producing Q1.If an Currently

Exhibit 9-1 -Refer to Exhibit 9-1.The Economy Is Currently Producing Q₁.If an Currently