LRASBADYSRAS₁SRASOSRAS2EADY33.In this graph, assume that the economy starts at point A and there is a favorable supply shockthat does not last forever. In this situation, point represents short-run equilibrium and pointrepresents long-run equilibrium.A)B)C)D)BODB; CB; AE;DE; A34. Assume that the economy is at point B. With no further shocks or policy moves, the economy inthe long run will be at point:A)A.B)B.c)C.D)D.Assume that the economy is at point E. With no further shocks or policy moves, the economy inthe long run will be at point:35.A)A.B)B.c)C.D)D.

The supply shock is an unexpected event that changes the overall supply of products. It leads to an…

B LRAS SRAS₁ SRASO SRAS₂ D E AD 33. Y Y In this graph, assume that the economy starts at point A and there is a favorable supply shock that does not last forever. In this situation, point represents short-run equilibrium and point represents long-run equilibrium. A) B; C B) B; A c) E; D D) 34. E; A Assume that the economy is at point B. With no further shocks or policy moves, the economy in the long run will be at point: A) A. B) B. c) C. D) 35. D. Assume that the economy is at point E. With no further shocks or policy moves, the economy in the long run will be at point: A) A. B) B. c) C. D)

B LRAS SRAS₁ SRASO SRAS₂ D E AD 33. Y Y In this graph, assume that the economy starts at point A and there is a favorable supply shock that does not last forever. In this situation, point represents short-run equilibrium and point represents long-run equilibrium. A) B; C B) B; A c) E; D D) 34. E; A Assume that the economy is at point B. With no further shocks or policy moves, the economy in the long run will be at point: A) A. B) B. c) C. D) 35. D. Assume that the economy is at point E. With no further shocks or policy moves, the economy in the long run will be at point: A) A. B) B. c) C. D)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 3SCQ: The short run aggregate supply curve was constructed assuming that as the price of outputs...

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