If Prices and Wages Are Flexible, a Decrease in Aggregate

question 56

Multiple Choice

If prices and wages are flexible, a decrease in aggregate demand will in the long run cause only a(n)

• A)decrease in the price level.
• B)increase in the price level.
• C)increase in the unemployment rate.
• D)decrease in real output.

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Definitions:

Intervertebral Foramen

An opening between adjacent vertebrae through which nerves and blood vessels pass.

Coccyx

The small, triangular bone at the base of the spinal column, consisting of three to five fused vertebrae, commonly referred to as the tailbone.

Spinous Process

A bony projection off the posterior (back) of each vertebra, serving as a point for muscle and ligament attachment.

Spinous Process

A bony projection off the posterior (back) part of each vertebra, serving as a point for muscle and ligament attachment.