A Decrease in Aggregate Supply Means

question 292

Multiple Choice

A decrease in aggregate supply means

• A) both the real domestic output and the price level will decrease.
• B) the real domestic output will increase and rises in the price level will become smaller.
• C) the real domestic output will decrease and the price level will rise.
• D) both the real domestic output and rises in the price level will become greater.

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Definitions:

Marginal Utility

The extra pleasure or benefit gained by a consumer from consuming an additional unit of a product or service.

Crawfish Consumption

The act of eating crawfish, which can be influenced by cultural, regional, or seasonal factors.

Pollution

The presence of contaminants in the natural environment that cause harm or discomfort to organisms and ecosystems.

Utility Function

A mathematical representation in economics of how a person ranks different bundles of goods according to their level of happiness or satisfaction.