New classical economists say that an unanticipated decrease in aggregate demand first
A) decreases the price level and real output, and then decreases long-run aggregate supply.
B) decreases long-run aggregate supply, and then decreases the price level and real output.
C) reduces short-run aggregate supply, and then reduces long-run aggregate supply.
D) decreases the price level and real output, and then increases short-run aggregate supply such that the economy returns to the full-employment level of output.
Correct Answer:
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