If the Price Level Turns Out to Be Lower Than

Multiple Choice

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

A) businesses cut back production
B) the potential output level decreases
C) initially,the short-run aggregate supply curve shifts leftward; later,there is a downward movement along that curve
D) initially,the short-run aggregate supply curve shifts leftward; later,there is an upward movement along that curve
E) an expansionary gap develops