Because Prices Change Too Slowly in the Short-Run and as a Result

Multiple Choice

Because prices change too slowly in the short-run and as a result, they do not quickly equalize the quantity demanded and quantity supplied of goods and services, the short-run response of the economy to a demand shock is through:

A) changes in output and employment levels rather than through changes in prices.
B) changes in prices rather than through changes in employment.
C) changes in employment but not in output.
D) changes in output but not in the employment.