Refer to the information provided in Figure 11.8 below to answer the questions that follow. Figure 11.8
-Refer to Figure 11.8. This economy cannot continue to produce Y2 (or at Point D) because
A) the price of raw material and wages will decrease shifting the aggregate supply curve to AS2.
B) the price of inputs will increase, shifting the aggregate supply curve to AS1.
C) the price of raw material will decrease, shifting the aggregate demand curve to AD1.
D) all of the above
Correct Answer:
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Q233: If _ equilibrium output _, the price
Q234: The long-run aggregate supply curve reflects the
Q235: When the _ decreases, then potential output
Q236: Related to the Economics in Practice on
Q237: Potential output is the most that can
Q238: Related to the Economics in Practice on
Q240: Long-run aggregate supply is equal to
A) short-run
Q241: Potential output is the same as long-run
Q242: If the short-run aggregate supply curve intersects
Q243: If the long-run aggregate supply curve is
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