$$An unexpected negative supply shock will cause

Multiple Choice

$$a decrease in real GDP and an increase in the price level.

$$an increase in both short$-$run real GDP and the price level.

$$an increase in real GDP and a decrease in the price level.

$$a decrease in both short$-$run real GDP and the price level.

Price LevelOutput $($in billions$)125$$$800125700125600125500125400$

$$

Multiple Choice

Long Run Aggregate Supply

Short Run Aggregate Supply

Aggregate Demand

Immediate Short Run Aggregate Supply

multiple choice

Only investment projects where the expected returns less than $3\%$

Any investment project with a positive expected return.

Only investment projects where the expected returns greater than $3\%$

Only investment projects where the expected return is equal to $3\%$