An Increase in the General Level of Prices in the Goods

Multiple Choice

An increase in the general level of prices in the goods and services market that is accompanied by a short-run reduction in real GDP is most likely caused by

A) an unanticipated decrease in aggregate demand.
B) an unanticipated increase in aggregate demand.
C) a favorable supply shock that shifts SRAS to the right.
D) an unfavorable supply shock that shifts SRAS to the left.