If the Economy Experiences Simultaneous Negative Aggregate Demand and Aggregate

question 33

Multiple Choice

If the economy experiences simultaneous negative aggregate demand and aggregate supply shocks,the new equilibrium price level ________ and the new equilibrium level of aggregate output ________.

• A) will he higher; will be lower
• B) will he lower; will be lower
• C) may be higher, lower, or not change; will be lower
• D) will be higher; may be higher, lower, or not change

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