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-In the Above Figure, Starting at E1, If There Is

Question 231

Multiple Choice

-In the above figure, starting at E1, if there is a supply shock that is temporary, the A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. B) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. D) aggregate supply would shift to SRAS1 and then return to SRAS0.
-In the above figure, starting at E1, if there is a supply shock that is temporary, the


A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0.
B) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1.
C) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1.
D) aggregate supply would shift to SRAS1 and then return to SRAS0.

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