Figure 24-2

-Refer to Figure 24-2.Ceteris paribus,a decrease in the expected future price level would be represented by a movement from
A) SRAS₁ to SRAS₂.
B) SRAS₂ to SRAS₁.
C) point A to point B.
D) point B to point A.

Question

Figure 24-2
 
-Refer to Figure 24-2.Ceteris paribus,a decrease in the expected future price level would be represented by a movement from
A) SRAS₁ to SRAS₂. 
B) SRAS₂ to SRAS₁. 
C) point A to point B. 
D) point B to point A.

Quizplus · Accepted Answer

A decrease in the expected future price level would increase short-run aggregate supply, shifting the SRAS curve from SRAS₁ to SRAS₂.

Figure 24-2 -Refer to Figure 24-2.Ceteris Paribus,a Decrease in the Expected Future