The long-run adjustment to a negative supply shock results in
A)the short-run aggregate supply curve shifting to the right.
B)the price level rising.
C)unemployment rising.
D)workers being willing to accept higher wages.
E)aggregate demand shifting to the left.

Question

Quizplus · Accepted Answer

In the long run, the economy self-corrects after a negative supply shock, leading to a rightward shift of the short-run aggregate supply curve as resources become more flexible and prices adjust.

The Long-Run Adjustment to a Negative Supply Shock Results in