An Increase in the General Price Level Will Lead to

question 33

Multiple Choice

An increase in the general price level will lead to

• A) an upward movement along the short-run aggregate supply curve as firms increase output.
• B) a rightward shift of the short-run aggregate supply curve as firms increase output.
• C) a downward movement along the short-run aggregate supply curve as firms decrease output.
• D) a leftward shift of the short-run aggregate supply curve as firms decrease output.
• E) no change in output because input prices are sticky.

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