If a Demand Shock Causes an Economy to Operate at a Point

Multiple Choice

If a demand shock causes an economy to operate at a point above potential GDP,then

A) the aggregate supply curve will shift to return the economy to the original point of equilibrium
B) the economy will correct itself through rising wages and prices
C) this short-run equilibrium point will become the new long-run equilibrium GDP
D) the economy will correct itself through falling wage rates and prices
E) the shock is said to be a negative demand shock