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Price level (P) LRAS1 LFIA32 SRAS1 SHAS2 AD2 Real GDP [1 [3 13 (Y) Based on the graph, which of the following would cause the
Price level (P) LRAS1 LFIA32 SRAS1 SHAS2 AD2 Real GDP [1 [3 13 (Y) Based on the graph, which of the following would cause the long-run equilibrium point to change from Point B to Point D? O The retirement age has decreased resulting in fewer people in the labor force 0 Firms and workers expect the price level to rise. O Government spending decreases. O A negative supply shock has occurred. 0 The country's overall productivity increased. Price level (P) Real GDP (Y) Based on the above graph, if the economy is currently at Point B, then, in the long run we can expect the economy to naturally adjust to Price level (P) Real GDP m D 17. (Y) Based on the graph given above, ifthe economy starts at Point A and ends up at Point E, then in the short run there was a(n) 0 decrease in aggregate demand (AD). 0 increase in AD. 0 decrease in short-run aggregate supply (SRAS). 0 increase in SRAS. 0 increase in longrun aggregate supply (LRAS)
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