-Refer to the Above Figure

question 127

Multiple Choice

-Refer to the above figure. Assume that B is the current long-run aggregate supply (LRAS) curve and that E is the current short-run aggregate supply (SRAS) curve. If a new discovery of large oil fields in Florida led to an increase in the nation's productive capacities, then we could expect the LRAS curve and the SRAS curve to

• A) remain B and E.
• B) move to A and D.
• C) move to C and F.
• D) move to A and F.

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Definitions:

Geographic Areas

Defined sections of the Earth's surface distinguished by physical, legal, or cultural characteristics.

Atlantic

Referring to the Atlantic Ocean, the second largest ocean in the world, which separates the Americas from Europe and Africa.

North Eastern

A geographical term referring to the northeast part of a country or region.

Southern

Pertaining to or characteristic of the south or Southern regions, often used in a geographical or cultural context.