An Expected Decline in the Prices of Consumer Goods Will

question 44

Multiple Choice

An expected decline in the prices of consumer goods will:

• A)decrease aggregate demand.
• B)increase the quantity of real domestic output demanded.
• C)increase aggregate demand.
• D)decrease the quantity of real domestic output demanded.

---

Definitions:

Labor Force

The aggregate sum of individuals working or in pursuit of work within a nation or area.

Discouraged Workers

Individuals not actively seeking employment because they believe no jobs are available for them.

Frictional Unemployment

A type of unemployment that occurs when individuals are temporarily unemployed while moving between jobs, entering the workforce for the first time, or re-entering the workforce.

Discouraged Workers

Individuals not actively seeking employment due to believing no jobs are available for them or they would not qualify for the jobs that are available.