-Refer to Figure 15-13

question 163

Multiple Choice

-Refer to Figure 15-13.Beginning at point A,suppose a supply shock shifts the aggregate supply curve to AS₂.In the long run,we would expect

• A) an increase in the price level and a decrease in real GDP
• B) an increase in the price level and a return of real GDP to its full-employment level
• C) a decrease in the price level to below its level at point A,and a return of real GDP to its full-employment level
• D) the price level and real GDP to return to their original levels at point A
• E) aggregate demand to increase until full employment is restored.

---

Definitions:

Substitute Resources

Alternative resources or inputs that can be used in production to replace other resources, helping to maintain production when some resources are scarce.

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Consumer Income

The total earnings or financial inflow that an individual receives from various sources, including wages, investments, and benefits, which determines their purchasing power.

Serious Public Concern

A matter that is of significant interest or worry to the general public often requiring government attention or action.