A negative shock in aggregate demand will likely result in no permanent change in ________.
A)output
B)the equilibrium inflation rate if the central bank responds by lowering interest rates
C)aggregate demand,if the central bank responds by lowering interest rates
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

A negative shock in aggregate demand will likely result in no permanent change in output, the equilibrium inflation rate if the central bank responds by lowering interest rates, or aggregate demand if the central bank responds by lowering interest rates.

A Negative Shock in Aggregate Demand Will Likely Result in No