If the price level falls by 5 percent,then all else being equal,the long-run aggregate supply curve will
A) remain unchanged.
B) shift to the right to reflect an increase in output of 5 percent.
C) shift to the right to reflect an increase in output of more than 5 percent.
D) shift to the left to reflect a decrease in output of 5 percent.
E) shift to the left to reflect a decrease in output of more than 5 percent.

Question

Quizplus · Accepted Answer

In the long-run, the economy has fully adjusted and all factors of production have adjusted to the new price level. Therefore, the long-run aggregate supply curve will not shift, but remain unchanged.

If the Price Level Falls by 5 Percent,then All Else