Multiple Choice
If aggregate demand shifts right then in the short run
A) firms will increase production.In the long run increased price expectations shift the short-run aggregate supply curve to the right.
B) firms will increase production.In the long run increased price expectations shift the short-run aggregate supply curve to the left.
C) firms will decrease production.In the long run increased price expectations shift the short-run aggregate supply curve to the right.
D) firms will decrease production.In the long run increased price expectations shift the short-run aggregate supply curve to the left.
Correct Answer:

Verified
Correct Answer:
Verified
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