Figure 2 shows the aggregate demand curve (AD), short-run aggregate supply curves (SRAS) and long-run aggregate supply curve (LRAS) for an economy.
The short-run aggregate supply curve shifts from SRAS$_1$ to SRAS$_2$. Which one of the following is the most likely cause of the resulting increase in real national output?
1 )
An increase in bank lending to households
2 )
An increase in government expenditure
Productivity rising faster than money wages
4 )
The action of the multiplier
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