Suppose Aggregate Demand in the Economy Sharply Declines

question 122

Multiple Choice

Suppose aggregate demand in the economy sharply declines. Mainstream economists say that the price level (at least for a time) will _______ and real output will _________.

• A) decrease; remain constant
• B) increase; remain constant
• C) remain constant; decrease
• D) remain constant; increase

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Definitions:

Glass Ceiling

An invisible barrier that prevents certain individuals, often women and minorities, from advancing to upper levels of leadership and management in organizations.

Succession Planning

A strategy for passing on leadership roles, often the ownership of a company, to an employee or group of employees.

Key Position

A role within an organization that is critical for its operation and success, often requiring specialized skills or carrying significant responsibilities.

Rapid Growth

A phase where a company or economy experiences a significantly higher than average increase in sales, revenue, or other financial metrics.