An economic contraction caused by a shift in aggregate demand causes prices to
A) rise in the short run, and rise even more in the long run.
B) rise in the short run, and fall back to their original level in the long run.
C) fall in the short run, and fall even more in the long run.
D) fall in the short run, and rise back to their original level in the long run.

Question

Quizplus · Accepted Answer

The Answer of An economic contraction caused by a shift in aggregate demand causes prices to
A) rise in the short run, and rise even more in the long run.
B) rise in the short run, and fall back to their original level in the long run.
C) fall in the short run, and fall even more in the long run.
D) fall in the short run, and rise back to their original level in the long run.

An Economic Contraction Caused by a Shift in Aggregate Demand