Which of the Following Is Correct

question 39

Multiple Choice

Which of the following is correct?

• A) An adverse aggregate demand shock reduces output and price in both the short run and the long run.
• B) An adverse aggregate demand shock reduces output but increases price in the short run and will have no effect on output and price in the long run.
• C) An adverse aggregate demand shock reduces output in the short run, but will have no effect on output in the long run.
• D) An adverse aggregate demand shock reduces output and price in the short run and increases both in the long run.

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Definitions:

Procommunist Books

Literature that supports or promotes the ideology of communism, often criticizing capitalist societies and advocating for a classless system.

Federal Employees

Individuals employed by the federal government of a country, working in various departments and agencies to administer and implement governmental functions and policies.

Economic Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.