Refer to the Above Diagram

Multiple Choice

Refer to the above diagram.If the price level rises above P₁ because of an increase in aggregate demand, the:

A) economy will move up along curve B and output will temporarily increase.
B) long-run aggregate supply curve C will shift upward.
C) short-run aggregate supply curve B will automatically shift to the right.
D) economy's output first will decline, then increase, and finally return to Q₁.