Refer to Table 10.3.2, which shows the aggregate demand and aggregate su...

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Table 10.3.2

Refer to Table 10.3.2, which shows the aggregate demand and aggregate supply schedules. Potential GDP is $7 trillion. With no change in monetary policy and fiscal policy, which of the following events will occur in the long run?

Short-run aggregate supply curve will shift rightward.

✅

Long-run aggregate supply curve will shift leftward.

❌

Long-run aggregate supply curve will shift rightward.

❌

Short-run aggregate supply curve will shift leftward.

❌✨

Both A and C will occur.

❌

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