Use the Following to Answer Questions: Figure: Two SRAS Curves

question 267

Multiple Choice

Use the following to answer questions: Figure: Two SRAS Curves
-(Figure: Two SRAS Curves) The figure shows the AD-AS model with two SRAS curves. If the economy is initially at Point A and expected inflation rate remains unchanged, the economy can achieve a real GDP growth rate of 9% only by:

• A) moving along SRAS₁ to Point B
• B) moving directly to Point C
• C) first moving to Point D and then moving along SRAS₂ to Point C.
• D) first moving to Point C and then to Point B.

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