In the Aggregate Demand-Aggregate Supply Model, a Decrease in the Expected

question 12

Multiple Choice

In the aggregate demand-aggregate supply model, a decrease in the expected price level, everything else remaining unchanged, causes _____to_____ in the short run.

• A)output; increase
• B)output; decline
• C)output; remain unchanged
• D)inflation; increase

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Definitions:

Internal Slave Trade

The trade of enslaved people within the borders of a country; in the United States, it particularly refers to the trade of slaves between states.

Wage Earners

Individuals whose primary income comes from their employment salary or wages, as opposed to investments or other sources.

Social Integration

The process by which individuals or groups of differing backgrounds come to live together within a community, sharing common norms, values, and practices.

Segregated Housing

Residential spaces separated by race, often enforced by law or policy, leading to unequal living conditions and opportunities.