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Question 148

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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 (b) and the government does not intervene, the result will likely be a shift of: A) AD<sub>1</sub> to AD<sub>2</sub>. B) SRAS<sub> </sub>to the left. C) LRAS to the left. D) SRAS to the right.
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y1 in panel (b) and the government does not intervene, the result will likely be a shift of:


A) AD1 to AD2.
B) SRAS to the left.
C) LRAS to the left.
D) SRAS to the right.

Correct Answer:

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