If the AS Curve Is Vertical and There Is a Decrease

question 33

Multiple Choice

If the AS curve is vertical and there is a decrease in aggregate demand,the result is

• A)a decrease in the price level with no change in real GDP.
• B)an equal decrease in national income.
• C)an increase in the price level.
• D)an increase in national income.
• E)no change in either price level or real GDP.

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Definitions:

Reduction In Income Inequality

Refers to efforts or policies aimed at decreasing the disparity in income distribution among a population, thereby promoting economic fairness.

Transfer Payments

Payments made by the government to individuals or other entities without receiving any goods or services in return, such as welfare benefits or social security.

Earned-Income Tax Credits

A refundable tax credit for low- to moderate-income working individuals and families, particularly those with children, aimed at reducing poverty and encouraging work.

Unequal Distribution Of Income

A situation where income is not distributed evenly among the population, leading to disparities in wealth and living standards.