Starting from the Long-Run Equilibrium at Point A,an Adverse Price

Multiple Choice

Starting from the long-run equilibrium at point A,an adverse price shock that shifts up the SRAS curve to SRAS' will move the short run equilibrium to point B,resulting in ___________ output and a ___________ price level.This amounts to ___________.

A) lower;higher;permanently higher inflation
B) lower;higher;stagflation
C) lower;higher;deflation
D) constant;higher;stagflation
E) higher;lower;stagflation