Which of the Following Is Most Likely to Throw an Economy

question 5

Multiple Choice

Which of the following is most likely to throw an economy into a recession?

• A) a reduction in the real interest rate
• B) an unanticipated increase in short-run aggregate supply
• C) an unanticipated increase in aggregate demand
• D) an unanticipated reduction in aggregate demand

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Definitions:

Supplier Power

The influence a supplier has over the price and availability of its products, affecting the market competitiveness.

Less Concentrated

Refers to an industry or market where power and resources are spread out among many competitors, reducing the level of competition.

Vital Inputs

Crucial resources or components required for the production process or for providing a service.

Homogenous Inputs

Inputs or resources used in production that are of the same kind and interchangeable, contributing to uniformity in the manufacturing process.