b. Shift the appropriate curve or curves to show the initial short-run adjustment. Then shift the appropriate curve or curves to show the long-run adjustment. Finally, place the points for short-run equilibrium and long-run equilibrium in their appropriate places. AD-AS Model LRAS Long-run equilibrium Short-run equilibrium SRAS AD Income, Output, Y Price Level, P

b. Shift the appropriate curve or curves to show the initial short-run adjustment. Then shift the appropriate curve or curves to show the long-run adjustment. Finally, place the points for short-run equilibrium and long-run equilibrium in their appropriate places. AD-AS Model LRAS Long-run equilibrium Short-run equilibrium SRAS AD Income, Output, Y Price Level, P

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to Figure 1. Point B represents Figure 1. P1 P2 LRAS YY2 ASI AS2 AD Select one: a. a short-run equilibrium and a long-run equilibrium. b. a short-run equilibrium but not a long-run equilibrium. c. a long-run equilibrium but not a short-run equilibrium. d. neither a short-run equilibrium nor a long-run equilibrium.
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