If Prices and Wages Are Sticky, a Decrease in Aggregate

question 61

Multiple Choice

If prices and wages are sticky, a decrease in aggregate demand will cause

• A) an increase in the price level and employment.
• B) a decrease in the price level and employment.
• C) an increase in the price level and a decrease in employment.
• D) a decrease in the price level and an increase in employment.

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Definitions:

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