Leftward Shifts in the Aggregate Supply Curve Are Expected to

question 54

Multiple Choice

Leftward shifts in the aggregate supply curve are expected to

• A) reduce real output and raise unemployment.
• B) increase real output but raise the price level.
• C) increase the price level unless the money supply is allowed to increase to bring down prices.
• D) leave output and employment unchanged when the aggregate demand curve intersects the aggregate supply curve's vertical range.
• E) reduce output but leave the price level unchanged if the economy is at full employment.

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