One possible result of a decrease in aggregate demand and no change in aggregate supply is
A) a recession.
B) an economic expansion.
C) an increase in employment levels.
D) a rise in the price level.

Question

Quizplus · Accepted Answer

A decrease in aggregate demand means there is less demand in the economy, resulting in lower output and profits for businesses. This can lead to a decrease in employment and ultimately a recession. A lack of change in aggregate supply means that the economy is not producing more goods and services to offset the decrease in demand. Therefore, a recession is the most likely result.

One Possible Result of a Decrease in Aggregate Demand and No