Moving Along the Aggregate Demand Curve, a Decrease in the Quantity

question 408

Multiple Choice

Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of

• A) an increase in income.
• B) an increase in the price level.
• C) a decrease in the price level.
• D) a decrease in income.

---

Definitions:

Risk Aversion

The tendency of individuals to prefer outcomes that are certain or less risky over outcomes that are uncertain, even if the uncertain outcomes might offer a greater expected return.

Income

The money received, especially on a regular basis, for work or through investments.

Fair Insurance Policy

An insurance contract that is considered equitable, offering reasonable terms, coverage, and protection for all parties involved.

Premium

The amount paid for an insurance policy or the difference above the nominal or face value of a security.