If Wages and Prices Are Perfectly Flexible, a Decrease in Aggregate

question 38

Multiple Choice

If wages and prices are perfectly flexible, a decrease in aggregate demand will cause a(n) _____ in the price level and _____ in unemployment.

• A) increase; an increase
• B) decrease; a decrease
• C) increase; no change
• D) decrease; no change

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Definitions:

Counseling

The professional guidance in resolving personal conflicts and emotional problems.

Curious

Having a strong desire to learn or know something, often leading to exploration and inquiry.

Collaborative Counselors

Therapists who work with clients as partners in the therapeutic process, valuing clients' input and working jointly towards achieving their goals.

Client

An individual who receives professional services, advice, or treatment from a therapist, counselor, or other mental health professional.