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-Refer to Exhibit 9-4

Question 84

Multiple Choice

-Refer to Exhibit 9-4.Assuming the economy is in an inflationary gap at a short-run equilibrium point with the price level at P<sub>2</sub>,the movement toward long-run equilibrium will be A) down and along AD<sub>1</sub>. B) up and along AD<sub>2</sub>. C) down and along SRAS<sub>1</sub>. D) up and along SRAS<sub>2</sub>. E) down and along SRAS<sub>2</sub>.
-Refer to Exhibit 9-4.Assuming the economy is in an inflationary gap at a short-run equilibrium point with the price level at P2,the movement toward long-run equilibrium will be


A) down and along AD1.
B) up and along AD2.
C) down and along SRAS1.
D) up and along SRAS2.
E) down and along SRAS2.

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