Suppose an Economy Is Initially in Long-Run Equilibrium, and It

Multiple Choice

Suppose an economy is initially in long-run equilibrium, and it then experiences a supply shock in the form of exceptionally high energy prices. Which of these will be true in this economy?

A) The short-run aggregate supply curve will shift leftward, and the long-run supply curve will shift rightward.
B) The short-run aggregate supply curve and the long-run aggregate supply curve will shift rightward.
C) The short-run aggregate supply curve will not shift, and the long-run aggregate supply curve will shift rightward.
D) The short-run aggregate supply curve will shift rightward, but the long-run aggregate supply curve will not shift.
E) The short-run aggregate supply curve and the long-run aggregate supply curve will shift leftward.