In the Aggregate Demand and Aggregate Supply Model,which Pair of Simultaneous

question 28

Multiple Choice

In the aggregate demand and aggregate supply model,which pair of simultaneous events causes a decrease in output and employment?

• A) lower demand and lower supply
• B) lower demand and higher supply
• C) higher demand and higher supply
• D) higher demand and lower supply

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Definitions:

Payroll Costs

The total expenses incurred by a company to compensate its employees, including wages, salaries, and benefits.

Early Retirement Incentive Programs

Offers that organizations provide to encourage employees to retire earlier than the normal retirement age, often including financial benefits.

Payroll Costs

The total amount of money a company spends on employee salaries, wages, benefits, and taxes.

Higher-Wage Workers

Employees who receive compensation at a rate higher than the average or standard in their sector, often due to specialized skills, experience, or high performance.