Figure 12-1 -Refer to Figure 12-1. Assume That the Economy Is Initially

question 80

Multiple Choice

Figure 12-1
-Refer to Figure 12-1. Assume that the economy is initially at Y₁. A nonintervention policy Jwould result in the restoration of potential output by allowing the

• A) the aggregate demand curve to shift to the right.
• B) the short-run aggregate supply curve to shift to the right.
• C) the aggregate demand curve to shift to the left.
• D) the short-run aggregate supply curve to shift to the left.

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