Suppose Housing Values Fall During a Recession

question 136

Multiple Choice

Suppose housing values fall during a recession. In the short run,

• A) the price level will fall as we move down the aggregate demand curve.
• B) the price level will fall as we move down the short-run aggregate supply curve.
• C) short-run aggregate supply will decrease and the price level will fall.
• D) short-run aggregate supply will increase because wages will fall.
• E) aggregate demand will increase because the demand for houses will increase.

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Definitions:

Likelihood

The probability or chance that a given event will occur.

Toys

Toys are objects designed for play, often used by children and pets to provide entertainment, stimulation, and aids in learning and development.

Put Away

To place something in its designated spot or to store it out of sight.

Discriminative Stimulus

A cue or signal in the environment that indicates the availability of reinforcement or punishment, guiding behavior in operant conditioning.