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-Refer to Figure 15-13

Question 53

Multiple Choice

-Refer to Figure 15-13.Starting from point A,suppose a supply shock shifts the aggregate supply curve to AS<sub>2</sub>.In the short run,this will A) decrease real GDP,increase the price level,lower wages,and return the aggregate supply curve to AS<sub>1</sub> B) increase real GDP,decrease the price level,increase wages,and return the aggregate supply curve to AS<sub>1</sub> C) decrease real GDP and increase the price level D) increase real GDP and decrease the price level E) lower the full employment level of real GDP to Y<sub>2</sub>
-Refer to Figure 15-13.Starting from point A,suppose a supply shock shifts the aggregate supply curve to AS2.In the short run,this will


A) decrease real GDP,increase the price level,lower wages,and return the aggregate supply curve to AS1
B) increase real GDP,decrease the price level,increase wages,and return the aggregate supply curve to AS1
C) decrease real GDP and increase the price level
D) increase real GDP and decrease the price level
E) lower the full employment level of real GDP to Y2

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