Recall Application 2, "Two Approaches to Determining the Causes of Recessions

question 81

Multiple Choice

Recall Application 2, "Two Approaches to Determining the Causes of Recessions," to answer the following questions:
-According to the application, a recession is likely to be caused by a decrease in aggregate demand if:

• A) prices do not change but output changes in the long run.
• B) prices and output do not change in the long run.
• C) prices and output change in the long run.
• D) prices change but output does not change in the long run.