764 $
© 2014 Pearson Canada Inc.$Figure 24- 1- In Figure 24.1 above, a ____ supply shock will shift the aggregate supply curve to AS 2
and the economy will return to the long run equilibrium at point ____.
A) negative; 1
B) negative; 3
C) positive; 1
D) positive; 3
Answer: A
Diff: 3 Type: MC Page Ref: 590
Skill: Applied
Objective List: 24.3 Differentiate between short-run and long-run equilibria in the context of the
aggregate demand and supply framework
- In Figure 24.1 the shift of the aggregate supply curve from AS 1 to AS 2 and the following shift
back to AS 1 is called ____.
A) a self-correcting mechanism
B) a self-fulfilling prophecy
C) a self-adjusting mechanism
D) a long-run correcting mechanism
Answer: A
Diff: 2 Type: MC Page Ref: 585
Skill: Recall
Objective List: 24.3 Differentiate between short-run and long-run equilibria in the context of the
aggregate demand and supply framework