A Negative Shock in Aggregate Demand Will Likely Result in ________

Multiple Choice

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

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