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-In the Above Figure, Starting at E₁, If There Is

Question 231

Multiple Choice

-In the above figure, starting at E₁, if there is a supply shock that is permanent, the A) aggregate supply would shift to SRAS₁ and LRAS₁ would shift to LRAS₀. B) aggregate supply would shift to SRAS₁ and LRAS₀ would shift to LRAS₁. C) aggregate supply would shift to SRAS₂ and LRAS₀ would shift to LRAS₁. D) aggregate supply would shift to SRAS₁ and then return to SRAS₀.
-In the above figure, starting at E₁, if there is a supply shock that is permanent, the


A) aggregate supply would shift to SRAS₁ and LRAS₁ would shift to LRAS₀.
B) aggregate supply would shift to SRAS₁ and LRAS₀ would shift to LRAS₁.
C) aggregate supply would shift to SRAS₂ and LRAS₀ would shift to LRAS₁.
D) aggregate supply would shift to SRAS₁ and then return to SRAS₀.

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