A Decrease in Aggregate Demand in the Economy Will Have

question 165

Multiple Choice

A decrease in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

• A)The price level will fall, and the level of GDP will be unaffected.
• B)The price level will fall, and the level of GDP will fall.
• C)The price level will rise, and the level of GDP will fall.
• D)The price level will rise, and the level of GDP will be unaffected.
• E)The price level will fall, and the long-run level of GDP will become more sensitive to changes in the price level.

---

Definitions:

Contraception

The deliberate prevention of conception or impregnation by any of various drugs, techniques, or devices. Other terms used to describe contraceptives are birth control and family planning.

Sexual Rights

The rights of individuals to make decisions about their own sexual health and reproductive rights without discrimination, coercion, or violence.

Disabilities

Physical or mental conditions that limit a person's movements, senses, or activities, affecting their day-to-day life and interaction with the environment.

Heterosexual

Describes a person who is sexually attracted to members of the opposite sex.