1. Suppose the Canadian economy is operating in a recession. If policymakers allow the economy to adjust to the long-run natural level on its own, which of the following describes the likely outcome?
2. People will raise their price expectations and aggregate demand will shift left
3. People will reduce their price expectations and aggregate demand will shift right
4. People will raise their price expectations and the short-run aggregate supply will
5. shift left
6. People will reduce their price expectations and the short-run aggregate supply
7. will shift right