-The figure above shows the aggregate demand,short-run aggregate supply,and long-run aggregate supply curves for the U.S.economy.The economy is currently at point A.A cost-push rise in the price level will initially move the economy to point ________ and to point ________.

Question

Quizplus · Accepted Answer

A cost-push rise in the price level, such as an increase in the money prices of raw materials, will initially shift the short-run aggregate supply curve to the left, moving the economy from point A to point C. If aggregate demand increases, it can move the economy to point D.

-The Figure Above Shows the Aggregate Demand,short-Run Aggregate Supply,and Long-Run