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In the Given Figure, the Economy Is Initially in Long-Run

Question 147

Multiple Choice

In the given figure, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point: In the given figure, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point: A) E. B) B. C) C. D) D.


A) E.
B) B.
C) C.
D) D.

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