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-Refer to Exhibit 16-4

Question 27

Multiple Choice

-Refer to Exhibit 16-4.If LRAS<sub>1</sub> shifts to LRAS<sub>2</sub>,and this causes AD<sub>1</sub> to shift to AD<sub>2</sub>,economists would call this a A) rational expectations cycle. B) policy ineffectiveness proposition. C) short run Phillips curve. D) real business cycle.
-Refer to Exhibit 16-4.If LRAS1 shifts to LRAS2,and this causes AD1 to shift to AD2,economists would call this a


A) rational expectations cycle.
B) policy ineffectiveness proposition.
C) short run Phillips curve.
D) real business cycle.

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