Refer to the diagram below. The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁. Assuming no change in aggregate demand, the long-run response to a recession caused by cost-push inflation is best depicted as a: A) move from a to d along the long-run aggregate supply curve. B) rightward shift of the aggregate supply curve from AS₂ to AS₁. C) move from a to c to d. D) leftward shift of the aggregate supply curve from AS₁ to AS₂.

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The Answer of Refer to the diagram below. The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁. Assuming no change in aggregate demand, the long-run response to a recession caused by cost-push inflation is best depicted as a: A) move from a to d along the long-run aggregate supply curve. B) rightward shift of the aggregate supply curve from AS₂ to AS₁. C) move from a to c to d. D) leftward shift of the aggregate supply curve from AS₁ to AS₂.

Refer to the Diagram Below