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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.


Definitions:

Liability

A financial obligation or debt that an individual or company owes, which must eventually be settled or paid off.

Common Stockholders

Individuals or entities that own the common shares of a company, granting them rights to vote on corporate matters and receive dividends.

Gross Investment

The total amount of money spent on new capital assets, not accounting for depreciation, indicating the aggregate investment in an economy.

Net Investment

The aggregate expenditure of a business or economy on capital assets, after subtracting depreciation.

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