A Decrease in Aggregate Demand Results in A(n)________ in the ________

question 43

Multiple Choice

A decrease in aggregate demand results in a(n) ________ in the ________.

• A)recession; long run
• B)expansion; long run
• C)expansion; short run
• D)recession; short run

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Definitions:

Raw Materials

Basic materials that are used in the manufacturing process to create finished goods.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.

Direct Labor

The wages and other compensation paid to workers who are directly involved in the production of goods or services.

Cash Collections

The process and sum of money received from business activities, such as sales or debt repayments, during a specific period.