Suppose That a Decrease in the Demand for Goods and Services

question 186

Essay

Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level? If the government does nothing, what ensures that the economy still eventually gets back to the natural rate of output?

---

Definitions:

Employing

The act of hiring individuals to perform specific tasks or jobs in exchange for compensation.

Equal Pay Act

A law designed to ensure that men and women receive equal pay for equal work, aiming to eliminate gender-based wage discrimination.

Male-Female Pay Gap

The difference in average earnings between women and men in the workforce, typically reported as a percentage.

Part-Timers

Employees who work less than the full-time hours, typically by working fewer days or hours per week.