a. Give an example of the cause in leftward shift of the SRAS from SRAS1 to SRAS2.

b. What happens to output, unemployment and prices at point B? Compare them with the economic circumstance at point A.

c. The economic situation at point B is called?

d. What polices do the fed need to take to bailout the economy from point B?

e. With the aid of a diagram, illustrate the effect of your proposed policy from part (d) above.