Question

Suppose that the economy is in long-run equilibrium. A sudden shift in the ____ curve will eventually result in a new long-run equilibrium where the price level is exactly the same as it was initially.

Answer 1

Short-run aggregate supply (SRAS)

Step-by-step explanation:

Suppose that the economy is in long-run equilibrium. A sudden shift in the short-run aggregate supply curve will eventually result in a new long-run equilibrium where the price level is exactly the same as it was initially.