Q 99

If the economy experiences simultaneous negative aggregate demand and aggregate supply shocks,and the Fed decides NOT to intervene with expansionary policy.Short-run aggregate supply will eventually shift back to the right,which will eventually bring the economy A) back to potential GDP at a lower price level. B) back to potential GDP at a higher price level. C) back to the original equilibrium price at a lower level of aggregate output. D) back to the original equilibrium price at a higher level of aggregate output.

Multiple Choice