Now suppose that policymakers did not do anything to address the impac.pdf

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Now suppose that policymakers did not do anything to address the impact of the shock. What would happen in the transition to the long run equilibrium? That is, in the absence of policy intervention (by either the fiscal or monetary authorities), as we transition from the short run equilibrium to the long run equilibrium, what does the model predict would happen to: 12. the SRAS? Shifts left/shifts right/ no impact 13. the LRAS? Shifts left/shifts right/ no impact 14. Inflation? Decreases/Increases/No change/Uncertain 15. Output? Decreases/Increases/No change/Uncertain.

Now suppose that policymakers did not do anything to address the impact of the shock. What
would happen in the transition to the long run equilibrium? That is, in the absence of policy
intervention (by either the fiscal or monetary authorities), as we transition from the short run
equilibrium to the long run equilibrium, what does the model predict would happen to:
12. the SRAS? Shifts left/shifts right/ no impact
13. the LRAS? Shifts left/shifts right/ no impact
14. Inflation? Decreases/Increases/No change/Uncertain
15. Output? Decreases/Increases/No change/Uncertain

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