1. If SRAS decreases on the ASAD graph, then what will happen on the SRPC graph is

A) an upward movement along the SRPC.
B) a downward movement along the SRPC.
C) a shift to the right of the SRPC.
D) a shift to the left of the SRPC.
E) an upward movement along the SRPC, along with a shift to the right of the SRPC.

2. Which of the following would cause a shift in the SRAS curve and the SRPC?

A) a negative supply shock
B) a positive supply shock
C) an expectation of lower inflation
D) an expectation of higher inflation
E) all of the above are correct answers

3. If the SRAS curve shifts to the right, then what will happen to the SRPC?

A) a shift in SRPC to the right
B) a shift in the SRPC to the left
C) a movement upward along the SRPC
D) a movement downward along the SRPC
E) moving down the SRPC and shifting the SRPC to the right