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.

Question

Quizplus · Accepted Answer

In the long run, the short-run aggregate supply curve shifts to the right as the economy adjusts back to its potential output level after a negative supply shock.

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