supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS...

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supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at

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Answer 1

Answer #1

As the reduction of oil and shift of SRAS curve is permanent so in the long run real GDP must be decreased. SO LRAS curve shifts to the left and new long-run equilibrium are formed where SRAS2=LRAS=AD

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Answer 2

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supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS...

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LRAS In the graph to the right illustrating the AD-AS model, assume the economy was in...

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a) Provide a factor that would shift the long-run aggregate supply (LRAS) curve to the right....

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supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS...

Homework Answers

Add Answer to: supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS...

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Add Answer to:
supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS...