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How Will a Permanent Adverse Supply Shock Shift the SRAS

Question 81

Multiple Choice

How will a permanent adverse supply shock shift the SRAS and LRAS curves?


A) Only the SRAS curve will shift left; the LRAS curve will not change.
B) The SRAS and LRAS curves will both shift left.
C) Only the SRAS curve will shift right; the LRAS curve will not change.
D) The SRAS and LRAS curves will both shift right.

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