A Demand Shock That Increases Real GDP Above Its Full-Employment

Multiple Choice

A demand shock that increases real GDP above its full-employment level will,in the long run,

A) lead to a higher wage rate and an upward shift of the aggregate supply curve
B) lead to a lower wage rate and a downward shift of the aggregate supply curve
C) lead to a higher wage rate and a rightward shift of the aggregate demand curve
D) lead to a lower wage rate and a leftward shift of the aggregate demand curve
E) cause no further shifts in the aggregate supply or aggregate demand curve