If a Shock to Aggregate Demand Occurs, the Period of the Initial

question 157

Multiple Choice

If a shock to aggregate demand occurs, the period of the initial change in real GDP is called

• A)the short run.
• B)the medium run.
• C)the long run.
• D)a recovery.
• E)the steady state.

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Definitions:

Certificate of Deposit

A bank-issued financial instrument that offers a fixed interest rate over a specified period of time.

Note

A written promise to pay a specified amount of money at a given time or on demand.

Distinguish

To recognize or treat as different in some respect due to distinct characteristics or features.

Negotiable

Capable of being bargained or discussed to reach a mutual agreement, often used in the context of contracts, terms, or financial instruments.