If the AS Curve Is Vertical and There Is a Decrease

question 33

Multiple Choice

If the AS curve is vertical and there is a decrease in aggregate demand,the result is

• A)a decrease in the price level with no change in real GDP.
• B)an equal decrease in national income.
• C)an increase in the price level.
• D)an increase in national income.
• E)no change in either price level or real GDP.

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Definitions:

Wages, Rent, And Profit

These are components of income distribution in economics, with wages paid to labor, rent earned from land, and profit derived from capital investment.

Scientific Thinking

A method of inquiry that involves observing phenomena, asking questions, forming hypotheses, conducting experiments, and drawing conclusions based on evidence.

Assumptions

Conditions or principles that are taken as true or as certain to happen, without proof, for the purpose of argument or investigation.

Factor Of Production

A resource used in the production process to generate goods and services, such as labor, land, and capital.