The Short-Run and Long-Run Aggregate Supply Curves Remain Stable, and a Decrease

question 303

Multiple Choice

The short-run and long-run aggregate supply curves remain stable, and a decrease in aggregate demand occurs. What is the result in the short run?

• A) An increase in the price level and real GDP will occur.
• B) A period of expansion and a rise in the unemployment rate could occur.
• C) A period of recession and a rise in the unemployment rate could occur.
• D) The price level will fall but real GDP will remain the same.

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