Multiple Choice
-In the above figure, starting at E₁, if there is a supply shock that is temporary, the
A) aggregate supply would shift to SRAS₀ and LRAS₁ would shift to LRAS₀.
B) aggregate supply would shift to SRAS₁ and LRAS₀ would shift to LRAS₁.
C) aggregate supply would shift to SRAS₂ and LRAS₀ would shift to LRAS₁.
D) aggregate supply would shift to SRAS₁ and then return to SRAS₀.
Correct Answer:

Verified
Correct Answer:
Verified
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