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-Refer to Figure 5

Question 26

Multiple Choice

-Refer to Figure 5.7. If short run equilibrium is at P<sub>1</sub>Y<sub>1:</sub> A) the short-run aggregate supply curve will shift up in the long run to restore equilibrium. B) the short-run aggregate supply curve will shift down in the long run to restore equilibrium. C) the aggregate demand curve will shift up in the long run to restore equilibrium. D) the aggregate demand curve will shift down in the long run to restore equilibrium.
-Refer to Figure 5.7. If short run equilibrium is at P1Y1:


A) the short-run aggregate supply curve will shift up in the long run to restore equilibrium.
B) the short-run aggregate supply curve will shift down in the long run to restore equilibrium.
C) the aggregate demand curve will shift up in the long run to restore equilibrium.
D) the aggregate demand curve will shift down in the long run to restore equilibrium.

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