What Happens in an Economy When Short-Run Aggregate Supply Decreases

question 112

Multiple Choice

What happens in an economy when short-run aggregate supply decreases?

• A) The price level rises, output rises, and an expansion occurs.
• B) The price level rises, output falls, and a recession occurs.
• C) The price level falls, output rises, and an expansion occurs.
• D) The price level falls, output falls, and a recession occurs.

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Definitions:

Cell

The basic structural, functional, and biological unit of all known living organisms, a building block of life.

Cell Nucleus

The membrane-bound organelle in eukaryotic cells that contains the genetic material, controlling the cell's growth, metabolism, and reproduction.

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A general term for conditions affecting the heart and blood vessels, such as coronary artery disease, heart attacks, and strokes.

Diabetes

A metabolic disease characterized by high blood sugar levels over a prolonged period, which can result in serious health complications.