Reset the graph and click on the blue square to apply a negative supply shock the the economy, Then adjust the movable point to view the effects of potential policy responses to the negative supply shock. Use what you observe to answer the questions that follow. a. In response to the effects of a negative supply shock, policymakers decide to increase aggregate demand. What are the effects of this choice? O O an increase in aggregate output, and an increase in the aggregate price level an decrease in aggregate output, and an decrease in the aggregate price level an decrease in aggregate output, and an increase in the aggregate price level an increase in aggregate output, and an decrease in the aggregate price level b. In choosing this option, policymakers chose to fight higher to rise even higher in the process. T , but also end up causing

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