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Jakob Littel

Feb 20, 2025

A negative demand shock, holding everything else constant:.

A negative demand shock, holding everything else constant:. a. moves the economy downward along the AD curve. b. moves the economy upward along the AD curve. c. shifts AD to the left and results in lower aggregate price levels and lower real GDP in the short run. d. shifts AS to the left and results in lower aggregate price levels and lower real GDP in the short run.

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