Question
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
A. lower price level
B. lower unemployment rates
C. increase in RDGP
D. higher employment rates
Answers
GPT-4o mini
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.
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.