-Refer to Figure 15-13.Beginning at point A,suppose a supply shock shifts the aggregate supply curve to AS₂.In the long run,we would expect
A) an increase in the price level and a decrease in real GDP
B) an increase in the price level and a return of real GDP to its full-employment level
C) a decrease in the price level to below its level at point A,and a return of real GDP to its full-employment level
D) the price level and real GDP to return to their original levels at point A
E) aggregate demand to increase until full employment is restored.

Question

-Refer to Figure 15-13.Beginning at point A,suppose a supply shock shifts the aggregate supply curve to AS₂.In the long run,we would expect
A) an increase in the price level and a decrease in real GDP 
B) an increase in the price level and a return of real GDP to its full-employment level 
C) a decrease in the price level to below its level at point A,and a return of real GDP to its full-employment level 
D) the price level and real GDP to return to their original levels at point A 
E) aggregate demand to increase until full employment is restored.

Quizplus · Accepted Answer

The Answer of 
-Refer to Figure 15-13.Beginning at point A,suppose a supply shock shifts the aggregate supply curve to AS₂.In the long run,we would expect
A) an increase in the price level and a decrease in real GDP 
B) an increase in the price level and a return of real GDP to its full-employment level 
C) a decrease in the price level to below its level at point A,and a return of real GDP to its full-employment level 
D) the price level and real GDP to return to their original levels at point A 
E) aggregate demand to increase until full employment is restored.