Answer Happy

Suppose the U.S. economy is in long-run equilibrium in the AD-AS model. Then, firms expect profits to increase. Which curve will shift and in which direction? A. SAS will shift Right OB. AD will shift Right C. AD will shift Left O D. SAS will shift Left In the short-run, what will happen to Y, P, and the unemployment rate? Y will P will the unemployment rate will OA. ↓ OA. ↓ O B. not change OB. ↑ O C. ↑ OC. not change O A. not change O B. ↑ OC. ↓ After the shock, will the economy be above, below, or at full employment? O A. below full employment OB. at full employment O C. above full employment After the shock, will the economy be above, below, or at the NRU? O A. at the NRU OB. above the NRU OC. below the NRU After the shock, will the economy have a contractionary gap, expansionary gap, or no gap? O A. no gap OB. expansionary gap OC. contractionary gap After the shock, will the economy face inflation? If so which type of inflation? O A. Yes; cost-push inflation O B. No; there is no added inflation O C. Yes; demand-pull inflation If the economy self-corrects in the long-run, which curve will shift and in which direction? O A. LRAS will shift Left O B. LRAS will shift Right O C. AD will shift Right D. SAS will shift Right O E. AD will shift Left OF. SAS will shift Left