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Question 1 2 ( 1 point ) Imagine that the economy is in long - run equilibrium. Then, perhaps because of improved international relations and
Question point Imagine that the economy is in longrun equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. In the long run, the change in price expectations created by optimism shifts AS right right AS left AD left 
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Imagine that the economy is in longrun equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.
In the long run, the change in price expectations created by optimism shifts
AS right
right
AS left
AD left
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