A Negative Shock in Aggregate Demand Will Likely Result in ________

question 18

Multiple Choice

A negative shock in aggregate demand will likely result in ________.

• A)a permanent change in output,if the central bank responds by lowering interest rates
• B)no permanent change in the equilibrium inflation rate,unless the central bank responds by lowering interest rates
• C)an eventual increase in aggregate supply for any inflation rate,if the central bank responds by lowering interest rates
• D)all of the above
• E)none of the above

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Definitions:

Chemical Change

A process where substances interact to form new substances with different chemical and physical properties.

Lower-Quality Energy

Energy forms that are less useful or harder to convert into work, often associated with higher entropy and less efficiency in usage.

Matter And Energy Laws

Refers to the physical laws that govern the behavior and interaction of matter and energy in physical systems, including the conservation of energy and the conservation of mass.

Recycle

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution (from incineration) and water pollution (from landfilling).