After a temporary beneficial supply shock hits the economy, general equilibrium is restored by

After a temporary beneficial supply shock hits the economy, general equilibrium is restored by



a. a shift up and to the left of the LM curve.
b. a shift down and to the right of the LM curve.
c. a shift to the left of the FE line.
d. a shift down and to the left of the IS curve.

Answer: B


FIN 201

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