When Aggregate Demand Decreases, What Happens to Prices and Employment

question 193

Multiple Choice

When aggregate demand decreases, what happens to prices and employment?

• A) Prices will fall and unemployment will rise.
• B) Prices and unemployment fall.
• C) Prices and unemployment rise.
• D) Prices will rise and unemployment will fall.

---

Definitions:

Subarachnoid Space

The interval between the arachnoid membrane and the pia mater surrounding the brain and spinal cord, filled with cerebrospinal fluid.

Arachnoid Mater

A delicate membrane, one of the three layers of the meninges that surround the brain and spinal cord.

Obturator Nerve

A nerve in the pelvis that emerges from the lumbar plexus, innervating portions of the lower limbs, particularly muscles in the medial thigh.

Genitofemoral Nerve

A nerve arising from the lumbar plexus, involved in motor and sensory functions of the genital and femoral regions.