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The economy is at P1 and Qn at the end of the short-run. The following diagram shows the long-run adjustment. What is wrong with the
The economy is at P1 and Qn at the end of the short-run. The following diagram shows the long-run adjustment. What is wrong with the diagram? Description of the diagram is below the diagram. This is a diagram with price on the vertical axis and quantity on the horizontal axis. There is an AD curve that slopes down. There is an SRAS1 curve that slopes up and a SRAS2 curve to the right of the first curve that also slopes up. Where AD and SRAS1 intersect, there is a P1 marked on the vertical axis and a QN marked on the horizontal axis. Where AD and SRAS2 intersect, there is a PN marked on the vertical axis and a Q2 marked on the horizontal axis. PN is below P1 and QN is to the left of Q2. Group of answer choices It should have been AD that shifted left to get us to Pn, not SRAS/ Nothing. There is no such thing as Pn. No curves should have shifted and we should have stated at Qn. It should have been AD that shifted right to get to Pn, not SRAS
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