Graphically an Increase in the Short-Run Aggregate Supply Line Represents

question 15

Multiple Choice

Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.

• A)adverse inflation shock; shock to potential output
• B)favorable inflation shock; shock to potential output
• C)shock to potential output; adverse inflation shock
• D)shock to potential output; favorable inflation shock

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