An Economic Contraction Caused by a Shift in Aggregate Demand

question 184

Multiple Choice

An economic contraction caused by a shift in aggregate demand causes prices to

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

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Definitions:

Obligors

Parties who are legally obligated to fulfill a duty or repay a debt.

Obligees

Parties to a contract or legal agreement who are entitled to receive a performance or benefit from the obligors.

Delegatee

An individual or entity to whom power, authority, or responsibility is formally transferred or delegated.

Delegator

A party that assigns tasks, responsibilities, or authority to another party, typically in a contractual or employment relationship.