Multiple Choice
If aggregate demand decreases and neither short- run nor long- run aggregate supply changes, then
A) there will be an inflationary gap.
B) there will be a recessionary gap.
C) in the long run, the long- run aggregate supply will decrease.
D) the price level will increase in the short- run and decrease in the long- run.
Correct Answer:
Verified
Correct Answer:
Verified
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