Suppose the economy is in long-run equilibrium. Then because of the COVID pandemic, people become worried about their future income and retain that worry for some time. In the long run, the change in price expectations created by this worry shifts Oa. long-run aggregate supply right. b. long-run aggregate supply left. Oc. short-run aggregate supply right. d. short-run aggregate supply left.
Suppose the economy is in long-run equilibrium. Then because of the COVID pandemic, people become worried about their future income and retain that worry for some time. In the long run, the change in price expectations created by this worry shifts Oa. long-run aggregate supply right. b. long-run aggregate supply left. Oc. short-run aggregate supply right. d. short-run aggregate supply left.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose the economy is in long-run equilibrium. Then because of the COVID pandemic, people become worried about their future income and
retain that worry for some time.
In the long run, the change in price expectations created by this worry shifts
Oa. long-run aggregate supply right.
b. long-run aggregate supply left.
Oc. short-run aggregate supply right.
d. short-run aggregate supply left.
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