In the Given Figure, the Economy Is Initially in Long-Run

Multiple Choice

In the given figure, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then there is initially ________ gap and the short-run aggregate supply curve will ________.

A) an expansionary; eventually shift to SRAS'
B) an expansionary; eventually shift to SRAS"
C) a recessionary; eventually shift to SRAS"
D) a recessionary; eventually shift to SRAS'