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.

Understand the concept of functional fixedness and its impact on problem-solving across different ages.

Identify and differentiate between key linguistic units such as phonemes, morphemes, and syntactical units.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company distributes to its shareholders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating ability of a stock.

Market Price

The current price at which a good or service can be bought or sold in the open market.