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AD - AS Shocks

Question 21

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AD - AS Shocks AD - AS Shocks -On the graph above,suppose the economy has moved from point H to point G.If the shock was temporary and inflation expectations are adaptive,the economy will next ________. A) return to point H B) move to point F C) move to a point between points G and H D) remain at point G E) none of the above
-On the graph above,suppose the economy has moved from point H to point G.If the shock was temporary and inflation expectations are adaptive,the economy will next ________.


A) return to point H
B) move to point F
C) move to a point between points G and H
D) remain at point G
E) none of the above

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