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Problem 1: Normally we think of the factors that cause the AD curve to shift as different from the factors that cause the LRAS curve to shift. Is this still true in the case of hysteresis?
Group of answer choices
Option 1: Yes, it is. Under no circumstances do the factors shifting AD have anything to do with shifts in LRAS. Option 2: To the extent that hysteresis occurs, factors that decrease AD would decrease LRAS. Option 3: To the extent that hysteresis occurs, factors that decrease AD would increase LRAS. Option 4: Hysteresis only involves simultaneous shifts in the SRAS and LRAS curves.
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