Refer to the diagram. The initial aggregate demand curve is AD1, and the initial aggregate supply curve is AS1. Assuming no change in aggregate demand, the long-run response to a recession caused by cost-push inflation is best depicted as a
A) move from a to d along the long-run aggregate supply curve.
B) rightward shift of the aggregate supply curve from A
C) move from a to c to d.
D) leftward shift of the aggregate supply curve from A
Correct Answer:
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A)