The Australian economy was initially in long-run equilibrium, but has now been hit by a price increase in imported drilling equipment which is essential for the country's mining sector. In the short run:
A. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts left.
B. the aggregate demand curve shifts left and the short-run aggregate supply curve shifts right.
C. the aggregate demand curve shifts right and the short-run aggregate supply curve does not shift.
D. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts right.
E. the aggregate demand curve shifts left and the short-run aggregate supply curve shifts left.
