lassay Community College Nestau Community Callings Price Level $20 Output/Real GDP (Trillions of $) 96% Employment Rate (% of the Labor Force) Output Gap Assume that the above diagram depicts the current state of the mad beconomy. Which sita mert is CORRECT? The adverse supply shock will lower output and employment, and raise prices, which will prompt ma ieve their policy geals The adverse supply shock will lower output and employment, and raise prices, which will prompt me demand to contain inflation, and then to expand aggregate demand to increase output and employment. The beneficial supply shock will raise output and employment, and lower prices, which will pro to action The contraction in aggregate demand will lower output and employment but raise prices, which will p contract aggregate demand to contain inflation, and then to expand aggregate demand to increase output and employment. None of the statements are correct MacBook Pro A e B D W R T Y E S D F H J K