In the Long Run, a Decrease in Aggregate Demand, All

question 67

Multiple Choice

In the long run, a decrease in aggregate demand, all other things unchanged, will cause the price level to _______ and potential output to _______ .

• A)increase; increase
• B)decrease; decrease
• C)increase; remain stable
• D)decrease; remain stable

---

Definitions:

Corporate Social Responsibility

A business model that incorporates self-regulation into a company's business model to ensure its activities have a positive impact on society, the environment, and the economy.

Classical Writings

Historical documents, literature, and texts that have significantly influenced fields such as philosophy, literature, and science, often serving as foundational material in their respective areas.

Public Good

A product or service that is made available to all members of society and whose use by one individual does not diminish availability for others.

Behavioural Approaches

Psychological perspectives focusing on observable behaviors and the environmental determinants of response patterns.