An Unexpected Decrease in Aggregate Demand

question 177

Multiple Choice

An unexpected decrease in aggregate demand

• A) causes the price level to fall and the unemployment rate to rise.
• B) causes the price level to fall and the unemployment rate to fall.
• C) causes the price level to rise and the unemployment rate to rise.
• D) causes the price level to rise and the unemployment rate to fall.

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Definitions:

Grenville

Often associated with George Grenville, a British Whig statesman whose policies, including the Stamp Act 1765, stirred discontent in the American colonies and contributed to the American Revolutionary War.

Western North Carolina

A region of the state of North Carolina in the United States, characterized by the Appalachian Mountains and known for its natural beauty and outdoor recreational opportunities.

Regulators

Officials or agencies responsible for controlling or supervising a particular activity or area of public interest by establishing guidelines, rules, or laws.