Figure 33-2.
-Refer to Stock Market Boom 2014.In the long run,the change in price expectations created by the stock market boom shifts
A) long-run aggregate supply right.
B) long-run aggregate supply left.
C) short-run aggregate supply right.
D) short-run aggregate supply left.

Question

Figure 33-2. 
-Refer to Stock Market Boom 2014.In the long run,the change in price expectations created by the stock market boom shifts
A) long-run aggregate supply right. 
B) long-run aggregate supply left. 
C) short-run aggregate supply right. 
D) short-run aggregate supply left.

Quizplus · Accepted Answer

In the long run, a stock market boom can lead to increased price expectations, which can increase costs for firms, shifting the short-run aggregate supply curve to the left.

Figure 33-2. -Refer to Stock Market Boom 2014.In the Long Run,the Change