Multiple Choice
Starting from the initial long-run equilibrium at point A in the diagram below,an adverse price shock which shifts up the SRAS curve to SRAS' will move the economy to point B,resulting in a temporary ___________ in output and a temporary ___________ in the price level.However,the working of the self-correcting mechanism will return the economy to ___________ in the long run.
A) fall;rise;C
B) fall;rise;A
C) rise;fall;A
D) rise;fall;C
E) fall;fall;A
Correct Answer:

Verified
Correct Answer:
Verified
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