how-does-a-decrease-in-aggregate-supply-affect-the-equilibrium-in-the-real-busin

Question

How does a decrease in aggregate supply affect the equilibrium in the Real Business Cycle Model?

Accepted Answer

It shifts the equilibrium to a lower level of real GDP.

Answer

It increases the price level at the equilibrium.

Answer

It has no effect on the equilibrium level of real GDP.

Answer

It shifts the equilibrium to a higher level of real GDP.