Suppose This Year's Inflation Rate Is 4 Percent, Which Is

Multiple Choice

Suppose this year's inflation rate is 4 percent, which is greater than the 2 percent everyone expected. Which of the following is true?

A) real GDP will increase
B) the unemployment rate will probably rise
C) potential output will remain the same
D) the short-run aggregate supply curve will shift to the right
E) there will be a leftward movement along a given short-run aggregate supply curve