Multiple Choice
If the economy experiences simultaneous negative aggregate demand and aggregate supply shocks,and the Fed decides NOT to intervene with expansionary policy.Short-run aggregate supply will eventually shift back to the right,which will eventually bring the economy
A) back to potential GDP at a lower price level.
B) back to potential GDP at a higher price level.
C) back to the original equilibrium price at a lower level of aggregate output.
D) back to the original equilibrium price at a higher level of aggregate output.
Correct Answer:

Verified
Correct Answer:
Verified
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