A Decrease in Aggregate Demand Causes a Decrease in ________

question 134

Multiple Choice

A decrease in aggregate demand causes a decrease in ________ only in the short run,but causes a decrease in ________ in both the short run and the long run.

• A)the price level; real GDP
• B)real GDP; real GDP
• C)the price level; the price level
• D)real GDP; the price level

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Definitions:

Simplist Principles

Fundamental rules or guidelines that are intentionally uncomplicated and straightforward.

Customer Needs

The wants, expectations, and requirements of consumers that businesses aim to fulfill with their products or services.

Empathy

The ability to understand and share the feelings of another from their perspective; often described as putting oneself in another's shoes.

Golden Rule

A moral principle that suggests treating others as one would wish to be treated, promoting empathy and fairness.