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:

Pain-Relief Medications

Drugs specifically formulated to alleviate pain, ranging from over-the-counter analgesics to prescription opioids, depending on the intensity and type of pain.

Scale

A device or tool used for measuring weight or mass of objects or individuals.

Recur

Recur means to occur again or repeat after a period of absence, often used in the context of symptoms or conditions in medical discussions.

Point

A precise location or position in space, often used as a reference or for navigation.