In the Absence of Monetary Intervention Following a Negative Shock

Multiple Choice

In the absence of monetary intervention following a negative shock to aggregate demand:

A) inflation,real growth,and nominal wage growth will all decrease.
B) inflation will decrease,but real growth and nominal wage growth will increase.
C) inflation will increase,real growth will decrease,and nominal wage growth will stay the same.
D) inflation and real growth will decrease,but nominal wage growth will stay the same.