A Decrease in Aggregate Demand Will Cause a Greater Decline

question 229

Multiple Choice

A decrease in aggregate demand will cause a greater decline in real output the

• A) less flexible is the economy's price level.
• B) more flexible is the economy's price level.
• C) steeper is the economy's AS curve.
• D) larger is the economy's marginal propensity to save.

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Definitions:

Locus

The specific physical location of a gene or DNA sequence on a chromosome.

Heterozygous

Having two different alleles of a particular gene or genes, resulting in variation in genetic traits.

Homozygous

Having two identical alleles of a particular gene, resulting in a specific trait or characteristic.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.