A Negative Shock in Aggregate Demand Will Likely Result in ________

Multiple Choice

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

A) a permanent change in output,if the central bank responds by lowering interest rates
B) no permanent change in the equilibrium inflation rate,unless the central bank responds by lowering interest rates
C) an eventual increase in aggregate supply for any inflation rate,if the central bank responds by lowering interest rates
D) all of the above
E) none of the above