-Refer to Figure 5

Multiple Choice

-Refer to Figure 5.7. If the aggregate demand is AD₀:

A) the short-run aggregate supply curve will shift up in the long run to restore equilibrium.
B) the short-run aggregate supply curve will shift down in the long run to restore equilibrium.
C) the aggregate demand curve will shift up in the long run to restore equilibrium.
D) the aggregate demand curve will shift down in the long run to restore equilibrium.