A Decrease in the Aggregate Demand Curve Along the LRAS

question 81

Multiple Choice

A decrease in the aggregate demand curve along the LRAS curve, all other things unchanged, will generate ____ in potential real GDP and ____ in the price level.

• A) an increase; no change
• B) a decrease; no change
• C) no change; an increase
• D) no change; a decrease

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Definitions:

Variable Allowance

An adjustment made to account for changes in work conditions that might affect the amount of effort or resources needed.

Payment

The act of transferring money in exchange for goods, services, or to settle a debt.

Checking

The process of verifying or inspecting items, details, or operations to ensure they meet required standards or are correctly executed.

Bagging

A machine learning ensemble technique that improves the stability and accuracy of algorithms by combining multiple models.