Answered

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f prices are inflexible, then a negative demand shock will lead to Group of answer choices a short-run decrease in prices. no change in prices a short-run increase in real GDP. a short-run decrease in real GDP.

Sagot :

Answer:

A short-run decrease in real GDP.

Explanation:

A short-run decrease in real GDP.

The last option is correct because the prices are inflexible which means an increase or decrease in quantity will have no effect on the prices. So, the negative demand shock( means a sudden decrease in quantity) will not affect the price but it will decrease the real GDP because the demand curve will shift leftwards.

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