What Happens If Aggregate Demand Decreases Simultaneously with an Increase

question 64

Multiple Choice

What happens if aggregate demand decreases simultaneously with an increase in short-run aggregate supply,due to anticipated contractionary monetary policy?

• A) The price level remains constant,and real gross domestic product (GDP)decreases.
• B) The price level increases,and real gross domestic product (GDP)increases.
• C) The price level increases,and real gross domestic product (GDP)decreases.
• D) The price level decreases,and real gross domestic product (GDP)remains constant.
• E) The price level increases,and real gross domestic product (GDP)remains constant.

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Definitions:

Longevity

The length of time that an individual lives or a thing exists, often referred to in the context of life spans exceeding the average for a species.

Health Habits

Practices and behaviors adopted by individuals that affect their physical and mental well-being, either positively or negatively.

Life Expectancy

The typical duration someone is anticipated to live.

World Nations

Distinct geopolitical entities, typically recognized as sovereign states, that make up the world.