A Decrease in Aggregate Demand and the Subsequent Cutbacks in Production

question 174

Multiple Choice

A decrease in aggregate demand and the subsequent cutbacks in production lead to

• A) frictional unemployment.
• B) cyclical unemployment.
• C) cost-push unemployment.
• D) structural unemployment.
• E) transitory unemployment.

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Definitions:

Rigid Posture

The maintenance of a stiff body position, often as a result of muscle tension, stress, or neurological conditions, limiting flexibility and ease of movement.

Disorganized

Lacking structure, system, or planning, often resulting in confusion or chaos.

Undifferentiated

Lacking distinctive or unique features; often used in marketing to describe products or services that are not specialized or targeted to a specific audience.

Paranoid

Characterized by, or suffering from, the mental condition of paranoia, which involves pervasive distrust and suspicion of others without sufficient basis.