Figure 16-7 -Refer to Figure 16-7. If the Economy Is in Equilibrium

Multiple Choice

Figure 16-7
-Refer to Figure 16-7. If the economy is in equilibrium at point 3,

A) it will most likely stay there for an indeterminate period.
B) the SRAS will most likely shift to the left because of firms and workers asking for higher prices and wages.
C) it will move to point 5 because of a shift in the aggregate supply curve from SRAS₁ to SRAS₂.
D) it will move to point 2 because the aggregate demand curve is likely to shift left in response to higher prices.