If the Economy Is in a Recession Caused by Lower

question 12

Multiple Choice

If the economy is in a recession caused by lower aggregate demand,then in the absence of policy action,the price level will ________,output will ________,and employment will ________ in the long run.

• A) increase; remain unchanged; increase
• B) remain unchanged; increase; increase
• C) decrease; increase; increase
• D) decrease; decrease; increase
• E) increase; increase; increase

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Definitions:

Process Innovations

Improvements or significant changes in the methods or procedures by which goods and services are produced or delivered.

Diffusion

A method where a new idea is spread via specific pathways over a period among individuals within a societal structure.

Substantial Diffusion

The wide and significant spread of ideas, practices, or innovations across a large population or area.

Complex Innovations

Innovations that involve multiple interdependent elements and changes, requiring comprehensive understanding and adaptability for successful implementation.