in the short run, when consumer confidence falls: multiple choice 1 aggregate demand will shift to the left, reducing equilibrium gdp and the price level. short-run aggregate supply will shift to the right, increasing equilibrium gdp and reducing the price level. short-run aggregate supply will shift to the left, reducing equilibrium gdp and increasing the price level. aggregate demand will shift to the right, increasing equilibrium gdp and the price level. in the long run: multiple choice 2 higher wages and prices of inputs increase the cost of production, so the short-run aggregate supply will shift to the left. lower wages and prices of inputs reduce the cost of production, so aggregate demand will shift to the right. higher wages and prices of inputs increase the cost of production, so aggregate demand will shift to the left. lower wages and prices of inputs reduce the cost of production, so the short-run aggregate supply will shift to the right.