Question
Imagine that businesses in general believe that the economy is likely to head into recession and so they reduce capital purchases. Their reaction would shift
Imagine that businesses in general believe that the economy is likely to head into recession and so they reduce capital purchases. Their reaction would shift _____.
| A. | AD curve and SRAS curve to the right. | |
| B. | AD curve and LRAS curve to the left. | |
| C. | SRAS curve to the right and AD curve to the left. | |
| D. | None of the above. |
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Intermediate Microeconomics
Authors: Hal R. Varian
8th edition
393934241, 978-0393934243
