Use the Following Graph to Answer the Following Questions

question 81

Multiple Choice

Use the following graph to answer the following questions.The graph depicts an economy where aggregate demand has decreased.Note that long-run aggregate supply remains changed.

-The graph shows a decrease in the price level due to a decrease in aggregate demand.Real gross domestic product (GDP) ,however,does not change.The best explanation for the events depicted on this graph is that

• A) the economy tends to be unstable and experiences high levels of unemployment.
• B) most recessions are caused by changes in aggregate supply.
• C) changes in aggregate demand are always positive.
• D) the government plays a major role in promoting economic stability.
• E) the economy quickly adjusts to changes in aggregate demand and remains at full employment.

---

Definitions:

Low-Context

Low-context refers to communication styles where messages are explicit and specific; verbal communication holds the majority of the information, common in cultures that prize directness.

Oral Traditions

Stories, songs, and knowledge passed through generations by word of mouth, without written documentation.

Demographic Characteristics

Attributes of populations that can be measured and analyzed, such as age, gender, income, education, and ethnicity.

Chinese Canadians

Individuals of Chinese descent who are citizens or permanent residents of Canada, representing a significant cultural and demographic group within the Canadian mosaic.