Question

An economy has experienced a rightward shift of its long-run aggregate supply curve and is now producing on that new long-run aggregate supply curve.
It is reasonable to expect that:

A. productivity has fallen.

B. the price level has risen.

C. the inflation rate has risen.

D. the cyclical unemployment rate has been unaffected.

E. the cyclical unemployment rate has fallen.

Answer 1

Answer:

The answer is letter D.

Explanation:

It is reasonable to expect that the cyclical unemployment rate has been unaffected.