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:

Key Performance Indicators

Quantifiable measures used to gauge the performance of a company, project, or campaign against predefined objectives.

Defined Objectives

Specific, measurable goals set by a business or individual to guide activities and assess performance.

Measurement Maps

Tools or methods used to visually represent and assess quantitative data or metrics.

Frequency

The number of occurrences of a repeating event per unit of time.