If the Aggregate Demand Curve Shifts in the Short Run

question 55

Multiple Choice

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

• A) the short-run aggregate supply curve will shift to bring it back into long-run equilibrium.
• B) the aggregate demand curve will eventually shift back once expectations are taken into account.
• C) inflation will always occur.
• D) we will move along the short-run aggregate supply curve back to equilibrium.

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