Figure 27-1
-Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising. If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the basic AD-AS model in the figure above.

Question

Figure 27-1 
-Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising. If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the basic AD-AS model in the figure above.

Quizplus · Accepted Answer

The Answer of Figure 27-1 
-Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising. If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the basic AD-AS model in the figure above.

Figure 27-1 -Refer to Figure 27-1. Suppose the Economy Is in Short-Run