Multiple Choice
Suppose the economy is initially in long-run equilibrium and then it experiences a supply shock in the form of sharply higher energy prices.How will the short-run and long-run aggregate supply curves be affected?
A) The short-run aggregate supply curve shifts leftward, but the long-run aggregate supply curve does NOT shift.
B) The short-run aggregate supply curve shifts rightward, and the long-run aggregate supply curve shifts rightward.
C) The short-run aggregate supply curve does NOT shift, and the long-run aggregate supply curve shifts rightward.
D) The short-run aggregate supply curve shifts rightward, but the long-run aggregate supply curve does NOT shift.
Correct Answer:

Verified
Correct Answer:
Verified
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