Which of the following would cause prices to fall and output to rise in the short run?

Which of the following would cause prices to fall and output to rise in the short run? a)short-run aggregate supply shifts right while aggregate demand shifts left by a larger magnitude. b)short-run aggregate supply shifts left while aggregate demand shifts left by a larger magnitude. c)aggregate demand shifts right while short-run aggregate supply shifts right by a larger magnitude. d)aggregate demand shifts left while short-run aggregate supply shifts right by a larger magnitude.

Answer

a)short-run aggregate supply shifts right while aggregate demand shifts left by a larger magnitude

Leave a Comment