How do prices change due to an economic contraction that is caused by a shift in aggregate demand? a. They rise in the short run and fall back to their original level in the long run. b. They fall in the short run and fall even more in the long run. O c. They rise in the short run and rise even more in the long run. d. They fall in the short run and rise back to their original level in the long run.

How do prices change due to an economic contraction that is caused by a shift in aggregate demand? a. They rise in the short run and fall back to their original level in the long run. b. They fall in the short run and fall even more in the long run. O c. They rise in the short run and rise even more in the long run. d. They fall in the short run and rise back to their original level in the long run.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

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