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17. Consider the following situation. The government implements Universal Basic Income, causing a rise in gov- ernment spending. Which of the following statements describes the
17. Consider the following situation. The government implements Universal Basic Income, causing a rise in gov- ernment spending. Which of the following statements describes the process of adjustment to long-run equi- librium? (A) Aggregate deamnd shifts right, causing higher prices. This deters producers, and SRAS shifts left. (B) Aggregate demand shifts right, causing higher prices. This spurs producers to increase producing, and SRAS shifts right. (C) SRAS shifts left, causing higher prices. This deters consumers, and aggregate demand shifts left. (D) SRAS shifts right, causing lower prices. This stimulates investment and aggregate demand shifts right
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