Aggregate Demand Will Decrease If

question 178

Multiple Choice

Aggregate demand will decrease if:

• A) the aggregate price level falls.
• B) the government raises tax rates.
• C) productivity declines.
• D) the money supply increases.

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Definitions:

Journal Entry

A Journal Entry is a record in bookkeeping that logs the debit and credit parts of a financial transaction in accounting.

Credits

Entries that increase liabilities or equity accounts, or decrease asset or expense accounts in accounting.

Wages Payable

An account that records the amounts owed to employees for work that has been performed but has not yet been paid.

Wages Expense

The total cost incurred by a company for paying hourly-based employee salaries.