Use the figure below to answer the following question(s). Figure 12-2
Refer to Figure 12-2. When the economy is operating at point a, reliance on the self-correcting mechanism will
A) result in higher resource prices and a shift to the left in the SRAS curve.
B) result in lower resource prices and a shift to the right in the SRAS curve.
C) lead to lower interest rates and a shift to the right in the AD curve.
D) lead to higher interest rates and a shift to the left in the AD curve.
E) do both b and c.

Question

Use the figure below to answer the following question(s). Figure 12-2
 Refer to Figure 12-2. When the economy is operating at point a, reliance on the self-correcting mechanism will
A) result in higher resource prices and a shift to the left in the SRAS curve. 
B) result in lower resource prices and a shift to the right in the SRAS curve. 
C) lead to lower interest rates and a shift to the right in the AD curve. 
D) lead to higher interest rates and a shift to the left in the AD curve. 
E) do both b and c.

Quizplus · Accepted Answer

The Answer of Use the figure below to answer the following question(s). Figure 12-2
 Refer to Figure 12-2. When the economy is operating at point a, reliance on the self-correcting mechanism will
A) result in higher resource prices and a shift to the left in the SRAS curve. 
B) result in lower resource prices and a shift to the right in the SRAS curve. 
C) lead to lower interest rates and a shift to the right in the AD curve. 
D) lead to higher interest rates and a shift to the left in the AD curve. 
E) do both b and c.

Use the Figure Below to Answer the Following Question(s)