An Economy in Which Output Has Decreased and Prices Have

question 44

Multiple Choice

An economy in which output has decreased and prices have decreased would suggest a:

• A) decrease in aggregate demand.
• B) increase in aggregate demand.
• C) decrease in short-run aggregate supply.
• D) increase in short-run aggregate supply.

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Definitions:

Apothecary System

An older system of measurement that includes units such as fluid ounces, fluid drams, pints, and quarts.

Metric System

A decimal system of measurement based on the meter, liter, and gram as units of length, capacity, and weight or mass, respectively.

Fluid Dram

A unit of volume in the apothecaries' system, equivalent to 1/8 of a fluid ounce.

Metric Equivalent

Metric equivalent is the corresponding value of a measurement expressed within the metric system, used for converting units like inches to centimeters.