Which of the Following Will Happen If Aggregate Consumption in an Economy

question 31

Multiple Choice

Which of the following will happen if aggregate consumption in an economy falls?

• A) Real output will fall.
• B) Labor supply will fall.
• C) Government expenditure will fall.
• D) Unemployment will fall.

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Definitions:

Conglomerate Merger

A type of business combination where two or more corporations in completely unrelated industries combine.

Money Lending

The act of giving money to another party in exchange for future repayment of the principal amount along with interest or other charges.

Province

An administrative division within a country, often with its own local government.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specific sum of money to a third party on demand or at a set time.