If the Economy Is in a Recession Caused by Lower

question 12

Multiple Choice

If the economy is in a recession caused by lower aggregate demand,then in the absence of policy action,the price level will ________,output will ________,and employment will ________ in the long run.

• A) increase; remain unchanged; increase
• B) remain unchanged; increase; increase
• C) decrease; increase; increase
• D) decrease; decrease; increase
• E) increase; increase; increase

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Definitions:

Prohibitory

Pertaining to laws, rules, or regulations that forbid certain actions or behaviors.

Pervasive

Spreading widely throughout an area or group of people, especially of an unwelcome influence or physical effect.

Remedies

The means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Severe Injury

A physical or psychological harm that significantly impacts an individual's health or capability to function.