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Question 191

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Use the following to answer questions:
Figure: Policy Alternatives Use the following to answer questions: Figure: Policy Alternatives -(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y<sub>1</sub> in panel (a) and the government does not intervene, the result will likely be: A) a shift of AD<sub>1</sub> to the left. B) a shift of SRAS<sub>1</sub> to SRAS<sub>2</sub>. C) a shift of LRAS to the left. D) no change in AD or SRAS.
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y1 in panel (a) and the government does not intervene, the result will likely be:


A) a shift of AD1 to the left.
B) a shift of SRAS1 to SRAS2.
C) a shift of LRAS to the left.
D) no change in AD or SRAS.

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