If the economy is in a recession caused by lower aggregate demand,then in the absence of policy action,the price level will ________,output will ________,and employment will ________ in the long run.
A) increase; remain unchanged; increase
B) remain unchanged; increase; increase
C) decrease; increase; increase
D) decrease; decrease; increase
E) increase; increase; increase

Question

Quizplus · Accepted Answer

In the long run, prices will decrease due to lower demand, and output and employment will increase as the economy self-corrects and returns to full employment.

If the Economy Is in a Recession Caused by Lower