If the SRAS Curve Is Positively Sloped,then a Shift to the Left

question 62

Multiple Choice

If the SRAS curve is positively sloped,then a shift to the left of the AD curve will lead to ___________ in the price level,in the short run.

• A) an increase
• B) a decrease
• C) no change
• D) either an increase or a decrease
• E) an initial increase,and then a decrease

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Definitions:

Recognition Lag

The delay between the time an economic problem or trend is identified and the time it is officially recognized by policymakers or authorities.

Implementation Lag

The time needed to introduce a change in monetary or fiscal policy.

Recognition Lag

The time it takes for policymakers to identify an economic issue or trend that requires intervention.

Active Policy

Economic strategies and measures actively implemented by a government to influence the economy, such as adjusting tax rates or spending.