Figure 33-6.
-Refer to Figure 33-6.Which of the long-run aggregate-supply curves is consistent with a short-run economic expansion?

Question

Figure 33-6. -Refer to Figure 33-6.Which of the long-run aggregate-supply curves is consistent with a short-run economic expansion? A)LRAS₁ B)LRAS₂ C)LRAS₃ D)Both LRAS₁ and LRAS₃

Quizplus · Accepted Answer

In a short-run economic expansion, the economy is producing beyond its long-run potential, which is represented by a leftward shift from the long-run aggregate supply curve. Hence, LRAS₁ is consistent with a short-run economic expansion.

Figure 33-6. -Refer to Figure 33-6.Which of the Long-Run Aggregate-Supply Curves Is