If Aggregate Demand in the U

question 114

Multiple Choice

If aggregate demand in the U.S.had grown more slowly than it actually did in 2010, the

• A)unemployment rate would have been even lower.
• B)inflation rate would have been even lower.
• C)unemployment rate would have been the same.
• D)economy would have grown faster.

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Definitions:

Low Wage Workers

Individuals employed in job positions that pay less than the median wage of the labor market.

Profits

Financial gains obtained when the revenues earned from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Underdeveloped Countries

Nations characterized by low levels of economic productivity, income, and technological sophistication, often accompanied by poor standards of living.

World Wars

Major global conflicts involving many of the world's nations; notably, the two occurrences in the 20th century (1914-1918 and 1939-1945).