Compared to an Initial Long-Run Equilibrium,an Aggregate Supply Shock That

Multiple Choice

Compared to an initial long-run equilibrium,an aggregate supply shock that reduces potential output results in a(n) _________ gap in the short run,and _________ output and _________ inflation in the long run.

A) expansionary;lower;lower
B) expansionary;lower;higher
C) expansionary;higher;higher
D) recessionary;potential;higher
E) recessionary;lower;higher