The U S Congress regularly enacts legislation that suspends or reduces import taxes for 2 or 3 years on certain imports

Question

The U S Congress regularly enacts legislation that suspends or reduces import taxes for 2 or 3 years on certain imports including raw materials and intermediate goods that are not made in the United States but that are vital for U S manufacturing This legislation reduces the cost of U S manufacturing causing a rightward shift of the short run aggregate supply SRAS curve This situation is depicted below in the movement of the economy from point A to point B In the figure below shift the appropriate curve to depict how the economy reacts in the long run when all prices are flexible You may assume that the shift of the SRAS curve does not have an impact on the long run aggregate supply curve To refer to the graphing tutorial for this question type please click here D Price Level P LRAST SRASI SAD2 SRAS2 Real GDP Y

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