In Response to a Decrease in Output, the Economy Would

question 142

True/False

In response to a decrease in output, the economy would revert to its original level of prices and output whether the decrease in output was caused by a decrease in aggregate demand or a decrease in short-run aggregate supply.

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Definitions:

Z

Often represents a variable in mathematics or denotes the set of all integers in number theory.

Evaluate

To calculate the value of an algebraic expression by substituting variables with numerical values.

Expression

A combination of symbols that represent a value or relationship, often including numbers, variables, and operation symbols.

Y

Typically represents the dependent variable in a mathematical equation or function, often plotted on the vertical axis in a graph.