How Will an Unanticipated Decrease in Aggregate Demand Influence Equilibrium

question 41

Multiple Choice

How will an unanticipated decrease in aggregate demand influence equilibrium output in the goods and services market?

• A) Output will increase, and the general level of prices will fall.
• B) Output will increase, and the general level of prices will rise.
• C) Output will decrease, and the general level of prices will rise.
• D) Output will decrease, and the general level of prices will fall.

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Definitions:

Genotype

The genetic makeup of an organism, consisting of the alleles inherited from both parents, which influences physical and behavioral traits.

Phenotype

The observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.

Observable Characteristics

Traits or features that can be seen or measured directly in individuals or phenomena.

Dominant Gene

A gene that expresses its phenotypic trait even when heterozygous with a recessive gene.