Figure 24-3
-Refer to Figure 24-3.Suppose the economy is at point A.If the economy experiences a supply shock,where will the eventual short-run equilibrium be?
A)A
B)B
C)C

Question

Figure 24-3 
-Refer to Figure 24-3.Suppose the economy is at point A.If the economy experiences a supply shock,where will the eventual short-run equilibrium be?
A)A 
B)B 
C)C

Quizplus · Accepted Answer

A supply shock would shift the short-run aggregate supply curve to the left, causing a decrease in real GDP and an increase in the price level. The eventual short-run equilibrium would be at point B, where the new aggregate demand curve intersects the new short-run aggregate supply curve.

Figure 24-3 -Refer to Figure 24-3.Suppose the Economy Is at Point A.If