a. Because of a negative demand shock output in the short run is below original potential output. In the long run
(Click to select) AD shifts to the left and brings economy back to original potential output. Equilibrium is achieved at a higher level of potential output. Equilibrium is achieved at a lower level of potential output. SRAS shifts to the left and brings economy back to original potential output. SRAS shifts to the right and brings economy back to original potential output. AD shifts to the right and brings economy back to original potential output. .