A change in the expected price level is likely to cause which of the following? a....
A change in the expected price level is likely to cause which of the following?
a. a shift in the short-run aggregate supply curve and long-run aggregate supply curve
b. a shift in the short run aggregate supply curve
c. a shift in the aggregate demand curve
d. a shift in the long-run aggregate supply curve
Homework Answers
Ans) the correct option is b. a shift in the short run aggregate supply curve
There will be no shift in the long run aggregate supply because the potential output will not change.
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