A Decrease in Aggregate Demand Is Harmful in the Short

question 167

Multiple Choice

A decrease in aggregate demand is harmful in the short run because ________,but beneficial in the long run because ________.

• A) real wealth rises; real wealth falls
• B) wages increase; wages decrease
• C) the price level rises; output falls
• D) unemployment rises; the price level falls
• E) the price level falls; the unemployment rate rises

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Movement of a population within a country.

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