A Negative Shock in Aggregate Demand Will Likely Result in ________

Multiple Choice

A negative shock in aggregate demand will likely result in ________.

A) a short run decrease in output
B) a permanently lower equilibrium inflation rate if the central bank does not respond by lowering interest rates
C) an eventual increase in aggregate supply for any inflation rate if the central bank does not respond by lowering interest rates
D) all of the above
E) none of the above