If the Aggregate Demand Curve Shifts, Moving the Economy Out

question 141

Multiple Choice

If the aggregate demand curve shifts, moving the economy out of long-run equilibrium:

• A) the short-run aggregate supply curve will shift to bring the economy back into long-run equilibrium.
• B) the aggregate demand curve will eventually shift back into place once expectations are taken into account.
• C) the long-run aggregate supply curve will shift to bring the economy back into long-run equilibrium.
• D) the overall price level will change, so that the economy can move along the short-run aggregate supply curve and find a new equilibrium.

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