An economic expansion caused by a shift in aggregate demand remedies itself over time as the expected price level
A)falls,shifting aggregate demand right.
B)rises,shifting aggregate demand left.
C)falls,shifting aggregate supply right.
D)rises,shifting aggregate supply left.

Question

Quizplus · Accepted Answer

Over time, as the expected price level rises, it leads to higher costs for producers, which shifts the short-run aggregate supply curve to the left, reducing output back to its natural level.

An Economic Expansion Caused by a Shift in Aggregate Demand