After a Negative Demand Shock,what Are the Expected Long-Run Adjustments

question 46

Multiple Choice

After a negative demand shock,what are the expected long-run adjustments?

• A) Wages rise,price level rises,and output falls back to potential
• B) Wages fall,price level rises,and output falls back to potential
• C) Wages fall,price level falls,and output increases back to potential
• D) Wages fall,price level rises,and output increases back to potential
• E) Wages rise,price level falls,and output increases back to potential.

---

Definitions:

Top-Down Managerial

A management approach where decision-making and direction come from the top levels of the organization and flow downward.

Profit-Making Businesses

Enterprises or organizations that operate with the primary goal of earning financial profits.

Budgetary Slack

Excess resources set within a budget to provide for uncertain events.

Operational Plans

Detailed plans that outline how a strategy will be implemented in terms of day-to-day operations.