Suppose the Economy Is at a Short-Run Equilibrium GDP That

Multiple Choice

Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP.Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?

A) Output will decrease.
B) Prices will increase.
C) Unemployment will rise.
D) Short-run aggregate supply will shift to the right.
E) Aggregate demand will shift to the right.