1. In the 1970s, the economy experienced stagflation - a situation where prices rise but output falls. In the short run, then, stagflation must be caused by
A - the AS curve shifting rightward
B - the AD cruve shifting rightward
C - the AD curve shifting leftward
D - the AS curve shifting leftward
2. In the long run, the shift described in the last question would cause ________ in the price level and _______ in real output.
A - decrease, no change
B - no change, decrease
C - increase, decrease
D - decrease, increase
E - none of the listed options