Multiple Choice
An increase in the general price level will lead to
A) an upward movement along the short-run aggregate supply curve as firms increase output.
B) a rightward shift of the short-run aggregate supply curve as firms increase output.
C) a downward movement along the short-run aggregate supply curve as firms decrease output.
D) a leftward shift of the short-run aggregate supply curve as firms decrease output.
E) no change in output because input prices are sticky.
Correct Answer:

Verified
Correct Answer:
Verified
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