Exhibit 20A-2 Macro AD/AS Models 
As shown in Panel (a) of Exhibit 20A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?
Definitions:
Prices Rise
An economic condition where the cost of goods and services increases over time, affecting purchasing power.
Suppliers Expect
Anticipations or predictions made by suppliers about future market conditions that can affect production decisions.
Equilibrium Price
The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market stability.
Equilibrium Quantity
The amount of products or services that are offered and sought after at the balanced market price.
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