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.

---

Definitions:

R

Commonly used to symbolize resistance in electrical equations and diagrams, measured in ohms (Ω).

RC Parallel Circuit

An electrical circuit composed of resistors and capacitors arranged in parallel, affecting current flow and charge distribution differently from series configurations.

Capacitive Reactance

Capacitive reactance is the measure of opposition that a capacitor offers to AC (alternating current), and it decreases with an increase in the frequency of the electric signal.

Resistive Current

The current that flows through a circuit with only resistive elements, directly proportional to the voltage across and inversely proportional to the resistance.