What Change Occurs in the Aggregate Supply and Aggregate Demand

question 11

Multiple Choice

What change occurs in the aggregate supply and aggregate demand model when the cost of doing business rises due to higher input costs?

• A) The aggregate demand curve shifts right, and aggregate supply remains stable.
• B) Aggregate demand remains stable, and short-run aggregate supply shifts left.
• C) Aggregate demand remains stable, and short-run aggregate supply shifts right.
• D) Aggregate demand remains stable, and both short-run aggregate supply and long-run aggregate supply shift right.

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