Exhibit 10.1 -Refer to Exhibit 10.1, Which Shows the Short-Run Aggregate Supply

Multiple Choice

Exhibit 10.1

-Refer to Exhibit 10.1, which shows the short-run aggregate supply (SRAS) curve of an economy. What happens to short run aggregate supply if prices are lower than expected?

A) SRAS shifts right.
B) SRAS shifts left.
C) There is an upward movement along SRAS to Y₃.
D) There is a downward movement along SRAS to Y₂.
E) Nothing happens in the short run.