-Refer to Figure 15-14

Multiple Choice

-Refer to Figure 15-14.Suppose a supply shock moves the economy from point A to point B.In the long run,we would expect

A) the increase in real GDP to increase wages and shift the aggregate demand curve to the right
B) the increase in real GDP to increase wages and shift the aggregate supply curve back to AS₁
C) the decrease in the price level to encourage buying and shift the aggregate demand curve to the right
D) wages to fall,causing the aggregate supply curve to shift rightward until full employment is restored
E) the economy to remain at point B