When an Aggregate Demand Shock Hits the Economy ________

Multiple Choice

When an aggregate demand shock hits the economy ________.

A) there is no conflict for the central bank between pursuing price or output stability because of the divine coincidence
B) the same long-run equilibrium real interest rate is reached whether the central bank intervenes or not
C) the long-run level of output is unaffected
D) all of the above
E) none of the above