Which of the Following Is Not a Reason Why Aggregate

question 34

Multiple Choice

Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?

• A) People stopped investing in houses.
• B) Consumption decreased.
• C) Business investment decreased.
• D) Costs of production increased throughout the economy.

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Definitions:

Income

The total amount of money earned or received by an individual or entity from various sources.

Price

The sum required, anticipated, or paid in currency as a swap for goods.

Miles

A unit of distance measurement equal to 5,280 feet or approximately 1.609 kilometers, commonly used in the United States.

Second-Class Tickets

Tickets offered by transportation services, such as trains or airplanes, that offer a lower level of comfort and amenities compared to first-class at a reduced price.