Other things the same,if the long-run aggregate supply curve shifts left,prices
A)and output both increase.
B)and output both decrease.
C)increase and output decreases.
D)decrease and output increases.

Question

Quizplus · Accepted Answer

If the long-run aggregate supply curve shifts left, it means that the economy's potential output has decreased. As a result, the economy will operate at a lower level of output, and prices will increase due to the reduced supply of goods and services. Therefore, the correct answer is C, which states that prices increase and output decreases.

Other Things the Same,if the Long-Run Aggregate Supply Curve Shifts