estion 16 Suppose a shift in aggregate demand creates an economic contraction. If policymakers can respond with sufficient speed and precision, how can they t yet offset the initial shift? swered arked out of Select one: O a. by shifting the aggregate supply left Flag estion O b. by shifting the aggregate demand left C. by shifting the aggregate supply right O d. by shifting the aggregate demand right estion 17 The economy is in long-run equilibrium. Suddenly, due to corporate scandals, a recession experienced by a major trading partner, and the loss of t yet confidence among policymakers, citizens become pessimistic concerning the future. They maintain this level of pessimism for a long time. swered arked out of In the short-run, which statement is consistent with the aggregate demand and aggregate supply theory? Flag estion Select one: a. The price level falls, and real GDP rises. O b. The price level and real GDP both increase. C. The price level rises, and real GDP falls O d. The price level and real GDP both decrease