When Aggregate Demand Meets Aggregate Supply in the Horizontal Portion

question 53

Multiple Choice

When aggregate demand meets aggregate supply in the horizontal portion of the aggregate supply curve,

• A)a decrease in demand will cause prices to rise but no change in output.
• B)a decrease in demand will cause output to rise but no change in prices.
• C)a decrease in demand will cause prices to fall but no change in output.
• D)a decrease in demand will cause output to fall but no change in prices.

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Definitions:

Phenotype

The observable traits or characteristics of an organism, resulting from the interaction of its genotype with the environment.

Allele

One of two or more alternative forms of a gene that arise by mutation and are found at the same place on a chromosome.

Genotype

The genetic makeup of an organism, consisting of both visible and non-visible traits.

Gamete

A fully developed haploid reproductive cell from either a male or female that can merge with one of the opposite sex during sexual reproduction, leading to the creation of a zygote.