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-Refer to Exhibit 16-4

Question 117

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-Refer to Exhibit 16-4.The economy is initially at point A,in long run equilibrium.A real business cycle would be represented by the following sequence of curve shifts: A) SRAS<sub>1</sub> to SRAS<sub>2</sub>,then LRAS<sub>1</sub> to LRAS<sub>2</sub>. B) AD<sub>1</sub> to AD<sub>2</sub>,then LRAS<sub>1</sub> to LRAS<sub>2</sub>. C) LRAS<sub>1</sub> to LRAS<sub>2</sub>,then AD<sub>1</sub> to AD<sub>2</sub>. D) LRAS<sub>1</sub> to LRAS<sub>2</sub>,then SRAS<sub>1</sub> to SRAS<sub>2</sub>. E) none of the above
-Refer to Exhibit 16-4.The economy is initially at point A,in long run equilibrium.A real business cycle would be represented by the following sequence of curve shifts:


A) SRAS1 to SRAS2,then LRAS1 to LRAS2.
B) AD1 to AD2,then LRAS1 to LRAS2.
C) LRAS1 to LRAS2,then AD1 to AD2.
D) LRAS1 to LRAS2,then SRAS1 to SRAS2.
E) none of the above

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