Multiple Choice
Scenario 14-2
The economy is in long-run equilibrium. Suddenly, due to corporate scandals, international tensions, and the loss of confidence among policymakers, citizens become pessimistic concerning the future. They maintain this level of pessimism for a long time.
-Refer to the Scenario 14-2.In the long run,the change in price expectations caused by pessimism leads to which of the following shifts?
A) Long-run AS shifts left.
B) Long-run AS shifts right.
C) Short-run AS shifts right.
D) Short-run AS shifts left.
Correct Answer:
Verified
Correct Answer:
Verified
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