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

---

Definitions:

View

A term referring to the method or mode in which information is displayed or presented in software applications.

Insert

A command or option in software applications used to add new data or elements into a document or file.

Normal Pointer

The default state or appearance of a cursor on a computer screen, typically an arrow.

I-beam Pointer

The shape of the cursor on a screen that indicates where text can be inserted.