One Possible Result of a Fall in Aggregate Demand Coupled

question 104

Multiple Choice

One possible result of a fall in aggregate demand coupled with a stable aggregate supply is

• A)a recession.
• B)an increase in employment levels.
• C)an economic expansion.
• D)a rise in the stock market.

---

Definitions:

Cash Break-Even

A financial metric indicating the point at which a company's cash expenses equal its cash revenues, excluding non-cash expenses.

Variable Cost

A cost that varies with the level of output or production, such as raw materials and labor expenses.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which remain constant regardless of the company's output.

Sales Price

The price at which a product or service is offered for sale in the market.