<p>Did the first FRQ on Macro say something about shifting the long run aggregate supply curve?</p>
<p>it actually asked for short run lol</p>
<p>dammmmmmmm i f’ed that up. only one or two parts on the 1st frq dealt with it anyways right?</p>
<p>yeah …idk why it asked for short run because the long run shifted not the short run…trick question? haha</p>
<p>wait! so the long run did shift???</p>
<p>yeah, but thats not what like one of the parts asked</p>
<p>I’m actually really scared that I went wrong somewhere on the MC’s and blew them all. I REALLY need at least a 4 on this exam!! :(</p>
<p>okay, so like 5 of my classmates claimed the long run did not shift. But i swear it said assume the Long run shifted. So LRAS shifted, but the question asked what happens to SRAS, right?</p>
<p>yeah short run remains the same but since GDP increases (production) then LRAS (measure of production) increases</p>
<p>okay, good. but wouldnt short run shift right to move to equilibrium? because if GDP increases, businesses have to produce more…</p>
<p>wait **** i forgot the question my bad. i dont think it had to do with GDP as much as an increase in spending (kinda forgot). </p>
<p>It said something bout how assume the economy adjusts to a new long run equilibrium. i assume that since it says that the LRAS shifts, and not the SRAS?</p>
<p>hmmm anyone find them really random? cause yeah… didnt walk out of there like the most confident person in the room, believe me.</p>
<p>^ I wasn’t sure about a bunch of the FRQ’s either. Hopefully they won’t kill me…</p>
<p>SRAS shifts to the right isn’t it? it’s confusing.
And i think i’m a bit off on FRQ #3. EH AH I SUCK</p>
<p>For number one on Macro, LRAS didn’t shift. AD shifted right, causing an inflationary period, where SRAS would eventually decrease to form equilibrium with AD1 and LRAS. This is due to an increase in wage rates, increasing an input cost, lowering SRAS. Thus, price level increases, and LRAS never moved</p>
<p>that is worded very strangly.</p>
<p>i’m pretty sure it explicitily stated that the economy adjusts to the new long run output</p>
<p>^ditto. Micro guys - q1 amirite?</p>
<p>Can’t edit atm but
bcell is right.</p>
<p>There would be no reason for it to move to a new long run output. Land labor capital and technology were unaffected</p>