Figure 33-2
-Refer to Figure 33-2. If the economy is in long-run equilibrium, then an adverse shift in short-run aggregate supply would move the economy from
A)S to T.
B)U to V.
C)T to S.
D)V to U.

Question

Figure 33-2  ​
-Refer to Figure 33-2. If the economy is in long-run equilibrium, then an adverse shift in short-run aggregate supply would move the economy from
A)S to T. 
B)U to V. 
C)T to S. 
D)V to U.

Quizplus · Accepted Answer

An adverse shift in short-run aggregate supply (SRAS) would move the economy from a point of long-run equilibrium to a point where output is lower and the price level is higher, which corresponds to moving from point U to point V in a typical aggregate demand and aggregate supply model.

Figure 33-2 ​

Figure 33-2