A negative supply shock that raises production costs will cause the
A. aggregate supply curve to shift up.
B. aggregate supply curve to she down.
C. aggregate demand curve to shift left.
D. aggregate demand curve to shift right.
An upward shift in aggregate supply initially causes
A. the inflation rate to rise and output to fall.
B. the inflation rate to fall and output to fall.
C. the inflation rate to fall and output to rise.
D. the inflation rate to rise and output to rise.
An upward shift in aggregate supply ultimately causes
A. the inflation rate to fall and output to rise.
B. the inflation rate to rise and output to remain unchanged.
C. the inflation rate to remain unchanged and output to remain unchanged.
D. the inflation rate to rise and output to rise.