Refer to the Graph Shown

question 146

Multiple Choice

Refer to the graph shown.If the price level is P₁ the:

• A)short-run aggregate supply curve will shift up (to the left) in the long run to restore equilibrium.
• B)short-run aggregate supply curve will shift down (to the right) in the long run to restore equilibrium.
• C)aggregate demand curve will shift to the left in the long run to restore equilibrium.
• D)aggregate demand curve will shift to the right in the long run to restore equilibrium.

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Definitions:

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