How Do Prices Change Due to an Economic Contraction That

question 30

Multiple Choice

How do prices change due to an economic contraction that is caused by a shift in aggregate demand?

• A) They rise in the short run and rise even more in the long run.
• B) They rise in the short run and fall back to their original level in the long run.
• C) They fall in the short run and fall even more in the long run.
• D) They fall in the short run and rise back to their original level in the long run.

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Definitions:

Area

A measure of the extent of a two-dimensional surface or shape, expressed in square units.

Perimeter

The total length of the sides of a geometric figure, such as a triangle, square, or rectangle.

Rectangle

A quadrilateral with four right angles, often used in geometry and graphical applications.

Looping Mechanism

A programming construct that repeats a block of code multiple times based on a specified condition.