Figure 9.3 RGDP, nova... RGDP Refer to Figure 9.3. Explain the process whereby this economy will 'selfcorrect' from its current equilibrium at E1. O eventually input prices will increase causing the cost of production to decrease. This decrease in costs of production will shift the SRAS curve leftward moving the economy back towards potential output. 0 eventually input prices will decrease causing the cost of production to decrease. This decrease in costs of production will shift the LRAS curve leftward moving the economy back towards potential output. 0 eventually input prices will decrease causing the cost of production to decrease. This decrease in costs of production will shift the SRAS curve rightward moving the economy back towards potential output. 0 eventually input prices will increase causing the AD curve to shift rightward moving the economy back towards potential output