An effect of short-run fluctuations due to a negative demand shock is __________.

A. lower price level
B. lower unemployment rates
C. increase in RDGP
D. higher employment rates

1 answer

An effect of short-run fluctuations due to a negative demand shock is A. lower price level.

A negative demand shock typically leads to a decrease in overall demand in the economy, which can result in lower prices and lower output levels in the short run.