AD - AS Shocks
-On the graph above,suppose the economy is at point F when there is a temporary positive supply shock.The new long-run equilibrium is at point ________.
A)H
B)I
C)F
D)G
E)none of the above

Question

AD - AS Shocks 
-On the graph above,suppose the economy is at point F when there is a temporary positive supply shock.The new long-run equilibrium is at point ________.
A)H 
B)I 
C)F 
D)G 
E)none of the above

Quizplus · Accepted Answer

A temporary positive supply shock will initially move the economy away from point F, but in the long run, the economy will return to its original equilibrium point F as the effects of the shock dissipate.