A Decrease in Aggregate Demand Is Harmful in the Short

question 43

Multiple Choice

A decrease in aggregate demand is harmful in the short run because ________ but not in the long run because ________.

• A) real wealth rises; real wealth falls
• B) wages increase; wages decrease
• C) the price level rises; output falls
• D) unemployment rises; the price level falls
• E) the price level falls; the unemployment rate rises

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Definitions:

Robert Peck

A psychologist known for his contributions to understanding the stages of psychological development in later adulthood.

Developmental Tasks

Specific achievements or milestones that individuals are expected to accomplish within a certain age range as part of their psychological growth.

Incidence Of Depression

The rate at which new cases of depression are identified in a specific population within a certain period of time.

Late Adulthood

A stage of human development that typically starts around the age of 65 and is characterized by physical, cognitive, and social changes, including retirement, adjusting to aging, and contemplating one's legacy.