Deflation

question 10

Multiple Choice

Deflation:

• A) reduces the level of aggregate demand in the economy.
• B) increases the level of aggregate demand in the economy.
• C) does not affect the level of aggregate demand in the economy.
• D) reduces the level of aggregate supply in the economy.

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Definitions:

Consumer Behavior

The study of how individuals or groups select, buy, use, and dispose goods, services, ideas, or experiences to satisfy their needs and wants.

Dynamic

Characterized by constant change, activity, or progress.

External Stimuli

Any information or event from the external environment that can elicit a sensory, emotional, or intellectual response.

Lifestyle

The interests, opinions, behaviours, and behavioural orientations of an individual, group, or culture.