Consider an Economy Which Is in Both Long-Run and Short-Run

Multiple Choice

Consider an economy which is in both long-run and short-run equilibrium. Which of the following will occur in the short-run if consumer confidence in this economy fell significantly?

A) The aggregate demand curve will shift to the left.
B) Firms will increase production as real wages will have fallen.
C) The short-run aggregate supply curve will move to the right.
D) The level of inflation in the economy will increase.