If Aggregate Demand Decreases and Neither Short-Run nor Long-Run Aggregate

question 169

Multiple Choice

If aggregate demand decreases and neither short-run nor long-run aggregate supply changes, then

• A) the price level increases in the short-run and decreases in the long run.
• B) there is an inflationary gap.
• C) there is a recessionary gap.
• D) in the long run, the long-run aggregate supply will decrease.

---

Definitions:

Directly

In a straight line or manner without any intervening space or substance.

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system.

Internal Carotid Artery

A major artery in the head and neck that supplies blood to the brain, eyes, and forehead.

Circulatory Pathway

The route taken by blood as it circulates through the body, delivering oxygen and nutrients while removing waste products.