Solved

Starting from the Initial Long-Run Equilibrium at Point a in the Diagram

Question 38

Multiple Choice

Starting from the initial long-run equilibrium at point A in the diagram below,an adverse price shock which shifts up the SRAS curve to SRAS' will move the economy to point B,resulting in a temporary ___________ in output and a temporary ___________ in the price level.However,the working of the self-correcting mechanism will return the economy to ___________ in the long run. Starting from the initial long-run equilibrium at point A in the diagram below,an adverse price shock which shifts up the SRAS curve to SRAS' will move the economy to point B,resulting in a temporary ___________ in output and a temporary ___________ in the price level.However,the working of the self-correcting mechanism will return the economy to ___________ in the long run.   A)  fall;rise;C B)  fall;rise;A C)  rise;fall;A D)  rise;fall;C E)  fall;fall;A


A) fall;rise;C
B) fall;rise;A
C) rise;fall;A
D) rise;fall;C
E) fall;fall;A

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions