If a demand shock causes AD to increase, and with it some inflation to occur in the short run, then we demonstrate the effect of rising costs in the long run by Select one: a. shifting SRAS back to the left. b. shifting LRAS out to the right. c. shifting AD back to the left. d. shifting the AD/SRAS intersection down.
If a demand shock causes AD to increase, and with it some inflation to occur in the short run, then we demonstrate the effect of rising costs in the long run by Select one: a. shifting SRAS back to the left. b. shifting LRAS out to the right. c. shifting AD back to the left. d. shifting the AD/SRAS intersection down.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If a
Select one:
a.
shifting SRAS back to the left.
b.
shifting LRAS out to the right.
c.
shifting AD back to the left.
d.
shifting the AD/SRAS intersection down.
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