If Policymakers Decrease Aggregate Demand,then in the Long Run

question 21

Multiple Choice

If policymakers decrease aggregate demand,then in the long run

• A)prices will be lower and unemployment will be higher.
• B)prices will be lower and unemployment will be unchanged.
• C)inflation and unemployment will be unchanged.
• D)None of the above is correct.

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Definitions:

Outsider Strategies

Techniques or tactics employed by individuals or groups outside of the established political, social, or economic systems to achieve their goals, often through unconventional means.

Corporate Elites

Refers to the highest-ranking officials and decision-makers within corporations, often perceived as possessing significant influence over national and international policies.

Lobbying

The act of attempting to influence decisions made by officials in the government, often by different interest groups.

Federal Government

A system of government where power is divided between a national (federal) government and various regional governments.