A Decrease in Aggregate Demand Will

question 100

Multiple Choice

A decrease in aggregate demand will

• A)cause inflation.
• B)decrease unemployment.
• C)move the economy to a lower point on the short-run Phillips curve.
• D)cause the short-run Phillips curve to shift to the right.

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Definitions:

Spontaneously

Describes an action or event occurring without external cause, arising from within or naturally.

Objective Reality

A concept referring to the existence of an external world that is independent of individual thoughts and perceptions.

Plato

An ancient Greek philosopher, a student of Socrates and teacher of Aristotle, known for his work in areas such as ethics, epistemology, and metaphysics.

Aristotle

An ancient Greek philosopher and scientist who made significant contributions to numerous fields of study.