If the Price Level Turns Out to Be Higher Than

Multiple Choice

If the price level turns out to be higher than expected,

A) businesses increase production
B) the potential output level increases
C) initially,the short-run aggregate supply curve shifts rightward; later,there is an upward movement along that curve
D) initially,the short-run aggregate supply curve shifts rightward; later,there is a downward movement along that curve
E) a contractionary gap develops