A Negative Demand Shock,holding Everything Else Constant

question 51

Multiple Choice

A negative demand shock,holding everything else constant:

• A) shifts AD to the left and results in lower aggregate price levels and lower real GDP in the short run.
• B) shifts AS to the left and results in lower aggregate price levels and lower real GDP in the short run.
• C) moves the economy downward along the AD curve.
• D) moves the economy upward along the AD curve.

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