The figure below shows the short-run aggregate demand and supply curves of an economy.If the economy is currently producing at Y2,long-run equilibrium will most likely be established by a(n):

A)increase in short-run aggregate supply.
B)decrease in short-run aggregate supply.
C)decrease in potential output.
D)increase in potential output.
E)rightward shift of the aggregate demand curve.

Question

The figure below shows the short-run aggregate demand and supply curves of an economy.If the economy is currently producing at Y2,long-run equilibrium will most likely be established by a(n):

A)increase in short-run aggregate supply. 
B)decrease in short-run aggregate supply. 
C)decrease in potential output. 
D)increase in potential output. 
E)rightward shift of the aggregate demand curve.

Quizplus · Accepted Answer

The Answer of The figure below shows the short-run aggregate demand and supply curves of an economy.If the economy is currently producing at Y2,long-run equilibrium will most likely be established by a(n):

A)increase in short-run aggregate supply. 
B)decrease in short-run aggregate supply. 
C)decrease in potential output. 
D)increase in potential output. 
E)rightward shift of the aggregate demand curve.

The Figure Below Shows the Short-Run Aggregate Demand and Supply