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Macroeconomics

Course: Macroeconomics > Unit 3

Lesson 6: Changes in the AD-AS model in the short run

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Changes in the AD-AS model in the short run

Google Classroom

What will happen to real GDP, unemployment, and the price level if there is a negative shock to aggregate demand?

(Choice A)
real GDP decreases, unemployment increases, and the price level decreases
(Choice B)
real GDP increases, unemployment decreases, and the price level increases
(Choice C)
real GDP increases, unemployment decreases, and the price level decreases
(Choice D)
real GDP increases, unemployment increases, and the price level decreases
(Choice E)
real GDP decreases, unemployment decreases, and the price level increases