If Aggregate Demand Shifts Inward Over a Long Period of Time

question 73

Multiple Choice

If aggregate demand shifts inward over a long period of time, with aggregate supply held constant, the economy should experience

• A)unemployment.
• B)recession.
• C)stagflation.
• D)inflation.
• E)budget surpluses.

---

Definitions:

Operating Cost

Expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.

Useful Life

The estimated period over which a fixed asset is expected to be usable for the purpose it was acquired.

Economic Value

Economic value refers to the worth of a good or service determined by its utility and ability to meet the demand of those willing to pay for it.

Operating Cost

The expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.