Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Which of the following best describes the short-run adjustments to a negative demand shock?

A. AD shifts right, causes a recession, increased unemployment rate, decreased output.
B. AD shifts left, causes a recession, increased unemployment rate, decreased output.
C. AS shifts right, causes inflation, decreased unemployment rate, increased output.
D. AS shifts right, long-run equilibrium, full employment, increased output.

Sagot :

GinnyAnswer

Final answer:

In response to a negative demand shock, short-run adjustments involve a leftward shift of the AD curve leading to a recession, increased unemployment rate, and decreased output.


Explanation:

In the context of a negative demand shock, the short-run adjustments involve a leftward shift of the AD curve. This shift leads to a recession, increased unemployment rate, and decreased output in the economy.


Learn more about Aggregate Demand, Short-run Adjustments, Negative Demand Shock here:

https://brainly.com/question/38615592


Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.