Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in workers and firms adjusting to having previously underestimated the price level would be represented by a movement from A)SRAS₁ to SRAS₂. B)SRAS₂ to SRAS₁. C)point A to point B. D)point B to point A.

Question

Quizplus · Accepted Answer

An increase in workers and firms adjusting to having previously underestimated the price level would cause a shift to the right in the short-run aggregate supply curve (SRAS) from SRAS₁ to SRAS₂, as shown in the graph. Therefore, the correct choice is (B).

Figure 13-2 -Refer to Figure 13-2.Ceteris Paribus,an Increase in Workers and Firms