Multiple Choice
How do prices change due to an economic contraction that is caused by a shift in aggregate demand?
A) They rise in the short run and rise even more in the long run.
B) They rise in the short run and fall back to their original level in the long run.
C) They fall in the short run and fall even more in the long run.
D) They fall in the short run and rise back to their original level in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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