Suppose there is an adverse supply shock. Which of the following shifts in SRAS and LRAS are likely to happen?
1) Shift in SRAS to the left and shift in LRAS to the left
2) Shift in SRAS to the left and shift in LRAS to the right
3) Shift in SRAS to the right and shift in LRAS to the left
4) Shift in SRAS to the right and shift in LRAS to the right