If Aggregate Demand Decreases, And, as a Result, Real Output

question 165

Multiple Choice

If aggregate demand decreases, and, as a result, real output and employment decline but the price level remains unchanged, it is most likely that

• A) the money supply has declined.
• B) the price level is inflexible downward and a recession has occurred.
• C) cost-push inflation has occurred.
• D) productivity has declined.

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Definitions:

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Refers to a focus or emphasis on completing specific tasks or objectives, often used in the context of leadership or teamwork styles.

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A vocalized expression of amusement or joy, often characterized by rhythmic, audible contractions of the diaphragm and other parts of the respiratory system.

CEO

Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.

Chairman

The presiding officer or leader of an organized group, such as a board, committee, or meeting.