If a good has an absolute price elasticity of 2, the demand for the good is

Which of the following causes a movement along the aggregate demand curve?

A) an increase in the price level B) an increase in government spending C) an increase in the money supply D) a fall in wages

A negative shock in aggregate demand will likely result in no permanent change in ________

A) output B) the equilibrium inflation rate if the central bank responds by lowering interest rates C) aggregate demand, if the central bank responds by lowering interest rates D) all of the above E) none of the above