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Based on the Figure, the Economy Is Initially in Long-Run

Question 104

Multiple Choice

Based on the figure, the economy is initially in long-run equilibrium at point A If there is a favorable supply shock that increases potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point:
Based on the figure, the economy is initially in long-run equilibrium at point A If there is a favorable supply shock that increases 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

Correct Answer:

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