-In the Above Figure, Starting at E₁, If There Is

question 142

Multiple Choice

-In the above figure, starting at E₁, if there is a supply shock that is permanent, the

• A)aggregate supply would shift to SRAS₁ and LRAS₁ would shift to LRAS₀.
• B)aggregate supply would shift to SRAS₁ and LRAS₀ would shift to LRAS₁.
• C)aggregate supply would shift to SRAS₂ and LRAS₀ would shift to LRAS₁.
• D)aggregate supply would shift to SRAS₁ and then return to SRAS₀.