Assume the United Kingdom economy is at equilibrium. The Guardian Newspaper (a leading UK news source) August 2021 headline read "UK plunges towards supply chain crisis due to staff and transport disruption." If government policy changes are NOT implemented and the economy self-adjusts in the medium-run, it is likely that

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Assume the United Kingdom economy is at equilibrium. The Guardian Newspaper (a
leading UK news source) August 2021 headline read "UK plunges towards supply
chain crisis due to staff and transport disruption." If government policy changes are
NOT implemented and the economy self-adjusts in the medium-run, it is likely that
O
a) short-run aggregate supply (SRAS) will decrease in the medium-run because
the equilibrium average price level is less than the expected price.
Ob) short-run aggregate supply (SRAS) will decrease in the medium-run because
the equilibrium average price level is greater than the expected price.
c) short-run aggregate supply (SRAS) will increase in the medium-run because
the equilibrium average price level is greater than the expected price.
d) short-run aggregate supply (SRAS) will increase in the medium-run because
the equilibrium average price level is less than the expected price.
Transcribed Image Text:Assume the United Kingdom economy is at equilibrium. The Guardian Newspaper (a leading UK news source) August 2021 headline read "UK plunges towards supply chain crisis due to staff and transport disruption." If government policy changes are NOT implemented and the economy self-adjusts in the medium-run, it is likely that O a) short-run aggregate supply (SRAS) will decrease in the medium-run because the equilibrium average price level is less than the expected price. Ob) short-run aggregate supply (SRAS) will decrease in the medium-run because the equilibrium average price level is greater than the expected price. c) short-run aggregate supply (SRAS) will increase in the medium-run because the equilibrium average price level is greater than the expected price. d) short-run aggregate supply (SRAS) will increase in the medium-run because the equilibrium average price level is less than the expected price.
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