If Prices Are Completely Flexible,then a Positive Aggregate Demand Shock

question 168

Multiple Choice

If prices are completely flexible,then a positive aggregate demand shock will lead to:

• A) an immediate upward shift of the SRAS curve.
• B) an immediate downward shift of the SRAS curve.
• C) a shift of the long-run aggregate supply curve to the right.
• D) a shift of the long-run aggregate supply curve to the left.

---

Definitions:

Aftereffects

Consequences or outcomes that follow an event, often referring to the residual or lingering effects.

Hopelessness

A feeling or state of despair, often resulting from prolonged suffering or when facing seemingly insurmountable challenges.

Higher Power

A spiritual presence or entity believed to have greater power and influence over human affairs.

Religious Services

Formalized periods of communal worship and practices observed within various faith traditions.