Figure 33-6.
-Refer to Figure 33-6. Which of the long-run aggregate-supply curves is consistent with a short-run economic expansion?
A) LRAS1
B) LRAS2
C) LRAS3
D) Both LRAS1 and LRAS3

Question

Figure 33-6. 
-Refer to Figure 33-6. Which of the long-run aggregate-supply curves is consistent with a short-run economic expansion?
A) LRAS1 
B) LRAS2 
C) LRAS3 
D) Both LRAS1 and LRAS3

Quizplus · Accepted Answer

In a short-run economic expansion, the economy is producing beyond its long-run potential, which is represented by a leftward shift from the long-run aggregate supply curve. Therefore, LRAS1 is consistent with a short-run economic expansion.

Figure 33-6. -Refer to Figure 33-6. Which of the Long-Run Aggregate-Supply Curves