During the Internet revolution in the late 1990s, a positive real shock shifted the long-run aggregate supply curve to the right, which led to:

Question

Quizplus · Accepted Answer

A positive real shock shifting the long-run aggregate supply curve to the right indicates an increase in potential output and a decrease in inflationary pressure. This would lead to an increase in real growth rate and a decrease in the inflation rate. Therefore, the correct answer is D.

During the Internet Revolution in the Late 1990s, a Positive