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FIGURE 24-1 -Refer to Figure 24-1.If the Economy Is Currently Producing Output

Question 137

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  FIGURE 24-1 -Refer to Figure 24-1.If the economy is currently producing output of Y<sub>0</sub>,the economy's automatic adjustment process will have the A) AS curve shifting to the right until point A is reached. B) vertical line at Y<sup>*</sup> shifting to the left until it gets to Y<sub>0</sub>. C) AD curve shifting to the right until point B is reached. D) economy remaining where it is. E) level of potential output falling. FIGURE 24-1
-Refer to Figure 24-1.If the economy is currently producing output of Y0,the economy's automatic adjustment process will have the


A) AS curve shifting to the right until point A is reached.
B) vertical line at Y* shifting to the left until it gets to Y0.
C) AD curve shifting to the right until point B is reached.
D) economy remaining where it is.
E) level of potential output falling.

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