Ruritania's economy is depicted below, with the long run aggregate supply curve (LRAS), three short run aggregate supply curves (AS1, AS2, and AS3) and three aggregate demand curves (AD1, AD2, and AD3). Right now, Ruritania is at point A, with real GDP of 7 trillion krone and a price level of 100. Answer the questions based on the information in the graph.
A shift to which curve would result in a short run equilibrium of 9 trillion krone and a lower price level? AS1 AS3 AD1 AD3 Which of the following could cause the shift in the first question? A permanent fall in energy prices. Increased consumer confidence. Increased government spending. Increased consumer optimism.