Exhibit 14A-6 Aggregate demand and supply model
Beginning from a point of short-run equilibrium at point E2 in Exhibit 14A-6, the economy's movement to a new position of long-run equilibrium from that point would best be described as:
A) a movement along the AD 2 curve caused by a shift in the SRAS 1 curve to SRAS 2 .
B) a movement along the SRAS1 curve with a shift in the aggregate demand curve.
C) a shift in the LRAS curve to an intersection at E 3 .
D) no shift of any kind.
Correct Answer:
Verified
Q34: Exhibit 14A-1 Aggregate demand and supply model
Q36: Exhibit 14A-2 Macro AD-AS Model Q37: Exhibit 14A-1 Aggregate demand and supply model Q38: Exhibit 14A-1 Aggregate demand and supply model Q40: Along the short-run supply curve (SRAS), a Q127: Beginning from the full-employment level of real Q133: Along the short-run aggregate supply curve Q146: The full-employment level of real GDP is Q149: Economic growth is represented by a: Q152: A rightward shift in potential real GDP
A) leftward
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