(Figure: Shifting the AD and SRAS) Starting in Long-Run

question 159

Multiple Choice

(Figure: Shifting the AD and SRAS) Starting in long-run equilibrium when the aggregate demand curve is AD₀ and the short-run aggregate supply curve is SRAS₀,if there is a supply shock,such as a drastic increase in the price of oil,this will cause _____ and a movement to a short-run equilibrium at point _____.

• A) a leftward shift in AD₁;a
• B) a rightward shift in AD₁;c
• C) a rightward shift in SRAS₂;c
• D) a leftward shift in SRAS₂;a

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