A real shock causes:
A) a shift of the aggregate demand curve.
B) a shift of both the long-run aggregate supply curve and the aggregate demand curve.
C) a shift of the long-run aggregate supply curve.
D) a movement along the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

Real shocks typically affect the productive capacity of an economy, leading to shifts in the long-run aggregate supply curve.

A Real Shock Causes