Use the Following Diagram to Answer the Following Questions

question 9

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If households decrease spending, this would most likely:

• A) shift aggregate demand from AD₁ to AD₂.
• B) cause unemployment.
• C) cause the equilibrium level of real GDP and the equilibrium price level to fall.
• D) all of the above.

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Definitions:

Life-Cycle Benefit

A benefit program that adapts to the changing needs of employees throughout different stages of their life and career.

Company-Paid

Refers to expenses or benefits covered by the employer, not the employee.

Day-Care Facilities

Institutions that provide care and supervision to children during the daytime, allowing parents to work or engage in other activities.

Factor-Comparison Method

A technique used in job evaluation that involves comparing jobs to a series of key factors and assigning monetary values to them.