Figure 10-18 Beginning from a Point of Short-Run Equilibrium

question 85

Multiple Choice

Figure 10-18 Beginning from a point of short-run equilibrium at point E₂ in Figure 10-18, the economy's movement to a new position of long-run equilibrium from that point would best be described as

• A) a movement along the AD₂ curve with a shift in the SRAS₁ curve to SRAS₂.
• B) a movement along the SRAS₂ curve with a shift in the AD₂ curve.
• C) a shift in the LRAS curve to an intersection at E₃.
• D) no shift of any kind.

---

Definitions:

Life Tenant

An individual who has the right to use and benefit from a property during their lifetime, but cannot sell or transfer the property.

Legal

Pertaining to the law or the system of rules that are enforced through social institutions to govern behavior.

Revised Residential Landlord

An updated legal framework that regulates the relationships between landlords and tenants in residential properties.

Tenant Act

Legislation designed to protect the rights of tenants by prescribing standards and procedures for the leasing and maintenance of rental properties.