Use the figure below to answer the following question(s).
Figure 11-2

-Refer to Figure 11-2.When the economy is operating at point a,reliance on the self-correcting mechanism will
A)result in higher resource prices and a shift to the left in the SRAS curve.
B)result in lower resource prices and a shift to the right in the SRAS curve.
C)lead to lower interest rates and a shift to the right in the AD curve.
D)lead to higher interest rates and a shift to the left in the AD curve.
E)do both a and d.

Question

Use the figure below to answer the following question(s).
Figure 11-2
 
-Refer to Figure 11-2.When the economy is operating at point a,reliance on the self-correcting mechanism will
A)result in higher resource prices and a shift to the left in the SRAS curve. 
B)result in lower resource prices and a shift to the right in the SRAS curve. 
C)lead to lower interest rates and a shift to the right in the AD curve. 
D)lead to higher interest rates and a shift to the left in the AD curve. 
E)do both a and d.

Quizplus · Accepted Answer

The Answer of Use the figure below to answer the following question(s).
Figure 11-2
 
-Refer to Figure 11-2.When the economy is operating at point a,reliance on the self-correcting mechanism will
A)result in higher resource prices and a shift to the left in the SRAS curve. 
B)result in lower resource prices and a shift to the right in the SRAS curve. 
C)lead to lower interest rates and a shift to the right in the AD curve. 
D)lead to higher interest rates and a shift to the left in the AD curve. 
E)do both a and d.

Use the Figure Below to Answer the Following Question(s)