If the Average Interval Between Firms' Price Adjustments Is Relatively

Multiple Choice

If the average interval between firms' price adjustments is relatively long

A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP.
B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP.
C) a reduction in aggregate demand will cause a relatively short-lived reduction in real GDP.
D) none of the above.