One Possible Result of a Decrease in Aggregate Demand and No

question 440

Multiple Choice

One possible result of a decrease in aggregate demand and no change in aggregate supply is

• A) a recession.
• B) an economic expansion.
• C) an increase in employment levels.
• D) a rise in the price level.

---

Definitions:

Introduction

The initial section or the beginning part of a document, presentation, or text, aiming to give an overview or background of the subject matter.

Long-Run Equilibrium

A state where supply equals demand and all markets are in balance, typically achieved over a period where all inputs can be adjusted.

Perfectly Competitive

A market structure characterized by a large number of small firms, with free entry and exit, where no single firm can influence the market price.

Monopolistically Competitive

An economic framework where numerous companies offer products that are alike but not exactly the same, granting them a certain level of influence over the market.