Exhibit 14A-1 Aggregate demand and supply model Beginning from short-run equilibrium at point E₂ in Exhibit 14A-1, the economy's movement to a new position of long-run equilibrium would best be described as: A) a movement along the AD₂ curve with a shift in the SRAS₁ curve. B) a movement along the SRAS₂ curve with a shift in the AD₂ curve. C) a shift in the LRAS curve to an intersection at E₁. D) no shift of any kind.

Question

Quizplus · Accepted Answer

The Answer of Exhibit 14A-1 Aggregate demand and supply model Beginning from short-run equilibrium at point E₂ in Exhibit 14A-1, the economy's movement to a new position of long-run equilibrium would best be described as: A) a movement along the AD₂ curve with a shift in the SRAS₁ curve. B) a movement along the SRAS₂ curve with a shift in the AD₂ curve. C) a shift in the LRAS curve to an intersection at E₁. D) no shift of any kind.

Exhibit 14A-1 Aggregate Demand and Supply Model Beginning from Short-Run