Figure 27-1
-Refer to Figure 27-1.Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising.If contractionary policy is used to move the economy back to long run equilibrium,this would be depicted as a movement from ________ using the static AD-AS model in the figure above.
A)D to C
B)C to B
C)A to E
D)B to A
E)E to A

Question

Figure 27-1 
-Refer to Figure 27-1.Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising.If contractionary policy is used to move the economy back to long run equilibrium,this would be depicted as a movement from ________ using the static AD-AS model in the figure above.
A)D to C 
B)C to B 
C)A to E 
D)B to A 
E)E to A

Quizplus · Accepted Answer

The Answer of Figure 27-1 
-Refer to Figure 27-1.Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising.If contractionary policy is used to move the economy back to long run equilibrium,this would be depicted as a movement from ________ using the static AD-AS model in the figure above.
A)D to C 
B)C to B 
C)A to E 
D)B to A 
E)E to A

Figure 27-1 -Refer to Figure 27-1.Suppose the Economy Is in Short-Run Equilibrium