If Aggregate Demand Decreases While Aggregate Supply Is Stable, Income

question 97

Multiple Choice

If aggregate demand decreases while aggregate supply is stable, income will ________ and the unemployment rate will ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

---

Definitions:

Litigation

The process of resolving disputes or controversies by filing lawsuits in court.

Mediation

A form of alternative dispute resolution where a neutral third party helps the disputing parties come to a mutually agreeable solution.

Summary Jury Trial

A condensed version of a jury trial intended as a non-binding process to encourage settlement of disputes.

In Rem Jurisdiction

A legal principle that allows a court to exercise authority over a piece of property rather than a person.