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When the Zero Lower Bound (ZLB) is active, the Aggregate Demand (AD) curve becomes vertical. Choose the right reason for the AD curve to be

When the Zero Lower Bound (ZLB) is active, the Aggregate Demand (AD) curve becomes vertical. Choose the right reason for the AD curve to be vertical at the ZLB Group of answer choices At the ZLB, inflation does not react to changes in short-run output At the ZLB, negative shocks to the economy are more likely to occur. At the ZLB, government expenditures are more powerful. At the ZLB, the central bank cannot reduce its interest rates even though inflation is below target

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