Start at long-run equilibrium. Then suppose that AD decreases. What will be the short-term result? O falling prices and a recession O rising prices and a recession O falling prices and an expansion O rising prices and an expansion

Start at long-run equilibrium. Then suppose that AD decreases. What will be the short-term result? O falling prices and a recession O rising prices and a recession O falling prices and an expansion O rising prices and an expansion

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 3CQQ

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Question

Start at long-run equilibrium. Then suppose that AD decreases. What will be the
short-term result?
O falling prices and a recession
O rising prices and a recession
O falling prices and an expansion
O rising prices and an expansion

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