Use the figure below to answer the following question(s) .
Figure 12-1

-Refer to Figure 12-2.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 b and c.
Correct Answer:
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