Suppose the BLS Announces That Price Levels Throughout the Economy

question 7

Multiple Choice

Suppose the BLS announces that price levels throughout the economy have increased. What response would we expect to see in the AD/AS model?

• A) The long-run aggregate supply curve would shift to the left.
• B) The aggregate demand curve would shift to the left.
• C) The short-run aggregate supply curve would shift to the left.
• D) None of these are true.

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