A Decrease in Demand for a Good Could Mean That

question 60

Multiple Choice

A decrease in demand for a good could mean that

• A)consumers are willing to pay a higher price for each quantity of the good
• B)consumers are willing to buy larger quantities of the good at each price
• C)the demand curve has undergone a parallel shift to the right
• D)the demand curve has undergone a nonparallel shift to the right
• E)the demand curve has shifted to the left

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Definitions:

Money Supply

The money supply refers to the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Natural Rate

Natural Rate often refers to the natural rate of unemployment, which is the level of unemployment consistent with sustainable economic growth, where inflation is stable.

Unemployment

The state of being jobless and actively looking for work.

Recession 2008-2009

A period marked by a significant decline in economic activity across the global economy, initiated by the financial crisis of 2007-2008.