Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to an increase in the aggregate demand curve would be:
a. a movement upward along the short-run aggregate supply curve.
b. a movement upward along the long-run aggregate supply curve
c. a downward shift in the short-run aggregate supply curve.
d. a shift in both the aggregate demand curve and the short-run aggregate supply curve with a movement along the long-run aggregate supply curve.
e. no change, since the economy is already in equilibrium.
a
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