Figure 34-3 PRICE LEVEL a a a LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS. AD Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a falling price level and a falling level of output, as the economy moves to point C. falling price level and a rising level of output, as the economy moves to point A. rising price level and a falling level of output, as the economy moves to point A. Orising price level and a rising level of output, as the economy moves to point C.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Figure 34-3
PRICE LEVEL
a a a
LRAS
Y, Y₂
QUANTITY OF OUTPUT
SRAS.
SRAS.
AD
Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a
falling price level and a falling level of output, as the economy moves to point C.
falling price level and a rising level of output, as the economy moves to point A.
rising price level and a falling level of output, as the economy moves to point A.
Orising price level and a rising level of output, as the economy moves to point C.
Transcribed Image Text:Figure 34-3 PRICE LEVEL a a a LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS. AD Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a falling price level and a falling level of output, as the economy moves to point C. falling price level and a rising level of output, as the economy moves to point A. rising price level and a falling level of output, as the economy moves to point A. Orising price level and a rising level of output, as the economy moves to point C.
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