Which of the Following Would Result in a Decrease in Aggregate

question 4

Multiple Choice

Which of the following would result in a decrease in aggregate demand?

• A)A higher domestic price level
• B)Higher raw materials prices
• C)Lower aggregate expenditures
• D)Technological advances
• E)Expansionary government policy

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Definitions:

Breach of Warranty

A Breach of Warranty occurs when a guarantee or promise about a product or service's condition, quality, or performance is not met, leading potentially to remedies such as repair, replacement, or compensation.

Exemption Clauses

Provisions in a contract that limit or exclude one party’s liability under certain circumstances.

Frustrated Contracts Act

Legislation that addresses situations where a contract, through no fault of the parties involved, cannot be fulfilled.

Deposit

Money prepaid with the provision that the funds are to be forfeited in the event of a breach of contract.