Suppose the U.S. economy is in long-run equilibrium in the AD-AS model. Then, consumers expect inflation to increase. Wh

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Suppose The U S Economy Is In Long Run Equilibrium In The Ad As Model Then Consumers Expect Inflation To Increase Wh 1 (47.38 KiB) Viewed 27 times

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