When Both Long-Run and Short-Run Aggregate Supply Shift Leftward

question 2

Multiple Choice

When both long-run and short-run aggregate supply shift leftward,

• A) monetary policy is more likely to restore the economy to its prerecession conditions.
• B) inflation is not a concern.
• C) the natural rate of unemployment decreases.
• D) monetary policy can have no effect on the economy,even in the short run.
• E) monetary policy is much less likely to restore the economy to its prerecession conditions.