An Unexpected Decrease in Aggregate Demand

question 276

Multiple Choice

An unexpected decrease in aggregate demand

• A)will decrease long-run aggregate supply.
• B)will decrease the average duration of unemployment.
• C)will decrease the price level.
• D)will decrease real GDP, but will not affect the rate and duration of unemployment.

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Definitions:

Subcontractor

An individual or business that signs a contract to perform part or all of the obligations of another's contract.

Workman

An individual employed to perform manual labor or skilled trades, often in construction or industrial settings.

Provincial Personal Property

Property other than real estate, such as cars, furniture, or jewelry, that is subject to the laws of a specific province in Canada.

Security Interest

A legal claim or lien on assets, which secures payment or performance of an obligation to the asset's holder.