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While the national economy was initially in long-run equilibrium, the Federal government has decided to significantly increase its spending on age care. In the short

While the national economy was initially in long-run equilibrium, the Federal government has decided to significantly increase its spending on age care. In the short run: the aggregate demand curve shifts left and the short-run aggregate supply does not shift. the aggregate demand curve shifts right and the short-run aggregate supply curve does not shift. the aggregate demand curve shifts left and the short-run aggregate supply curve shifts right. the aggregate demand curve shifts left and the short-run aggregate supply curve shifts left. the aggregate demand curve shifts right and the short-run aggregate supply curve shifts right

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