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When Consumers Suddenly Become More Pessimistic About the Economy,a Negative

Question 167

Multiple Choice

When consumers suddenly become more pessimistic about the economy,a negative aggregate demand shock shifts the:


A) LRAS curve inward,reducing the real growth rate in the short run.
B) LRAS curve outward,reducing the real growth rate in the short run.
C) AD curve inward,reducing the real growth rate in the short run.
D) AD curve outward,reducing the real growth rate in the short run.

Correct Answer:

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