Graphically an Increase in the Short-Run Aggregate Supply Line Represents

Multiple Choice

Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.

A) adverse inflation shock; shock to potential output
B) favorable inflation shock; shock to potential output
C) shock to potential output; adverse inflation shock
D) shock to potential output; favorable inflation shock