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.

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Definitions:

Purchasing System

An organized method used by businesses to acquire goods and services, involving procedures for requisition, selection, and procurement.

Group Norms

Unwritten set of expectations for group members—what people ought to do; basic principle to follow in getting along with coworkers

Orientation Programs

Training sessions designed to familiarize new employees with the policies, procedures, and culture of an organization.

Being Civil

The act of being polite and respectful in interactions with others, demonstrating good manners and courtesy.