Ceteris paribus, in the long run, a negative supply shock causes

A) the long-run aggregate supply curve to shift to the left.
B) unemployment to fall below its short-run level.
C) equilibrium real GDP to fall.
D) the price level to rise initially, and then return to its lower level.

D

Economics

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An increase in inflationary expectations __________ interest rate

A) raises the natural B) raises the nominal C) lowers the natural D) lowers the nominal

Economics

Why might the supply of loans increase as interest rates fall?

What will be an ideal response?

Economics