Suppose an economy is initially in long-run equilibrium and it then experiences a supply shock in the form of exceptionally high energy prices. Which of these will be true in this economy?
a. The short-run aggregate supply curve will shift leftward, and the long-run supply curve will shift rightward.
b. The short-run aggregate supply curve and the long-run supply curve will shift rightward
c. The short-run aggregate supply curve will not shift, and the long-run aggregate supply curve will shift rightward.
d. The short-run aggregate supply curve will shift rightward, but the long-run aggregate supply curve will not shift.
e. The short-run aggregate supply curve and the long-run supply curve will shift leftward.
e
Economics
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