A Decrease in Aggregate Demand Will Cause

question 346

Multiple Choice

A decrease in aggregate demand will cause

• A) prices to fall according to classical economists, and unemployment to increase according to Keynes.
• B) prices to fall and unemployment to increase according to both classical economists and Keynes.
• C) aggregate supply to fall according to classical economists, and prices to fall according to Keynes.
• D) aggregate supply to fall according to Keynes, and unemployment to increase according to classical economists.

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Definitions:

Social Institutions

Organized structures and systems in society that dictate certain patterns of behavior and relationships, such as family, education, religion, and economy.

Impact

The action of one object coming forcibly into contact with another, or a marked effect or influence of something.

Structure

The arrangement or organization of related elements in a system or entity, often providing stability or support.

Organic

In sociology, describes societies that function like a living organism with complex, interdependent systems; in agriculture, refers to food produced without synthetic pesticides or fertilizers.