Suppose Aggregate Demand Fell

question 85

Multiple Choice

Suppose aggregate demand fell. In order to stabilize the economy, the government might

• A)increase the money supply.
• B)decrease government expenditures.
• C)increase taxes.
• D)do nothing.

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Definitions:

Sclera

The white, outer layer of the eyeball, providing protection and maintaining the eye's shape.

Retina

Nervous tunic of the eyeball.

Lacrimal Gland

Tear gland located in the superolateral corner of the orbit.

Mitral Cells

Neurons in the olfactory bulb that receive signals from the sensory neurons and transmit them to other parts of the brain for odor processing.