Other Things Constant,a Decrease in Aggregate Demand Will Lead to

question 174

Multiple Choice

Other things constant,a decrease in aggregate demand will lead to

• A)a decrease in the demand for resources.
• B)an increase in the demand for resources.
• C)an increase in the general level of prices.
• D)a reduction in the natural rate of unemployment.

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Definitions:

Transportation Costs

These are expenses incurred in moving goods or materials from one location to another, including fuel, labor, and maintenance costs.

Fixed Cost

Expenses that do not change with the level of goods or services produced over a short period, such as rent or salaries.

Attractive Location

A site or place deemed desirable for setting up businesses or operations due to factors such as low costs, strategic position, or access to resources.

Fixed Cost

Expenses that do not change with the level of goods or services produced, such as rent, salaries, or loan payments.