If constant-dollar national income decreased by $6 billion over a one-year period,then it must be true that
A)output of every product decreased.
B)the price level decreased.
C)aggregate output decreased.
D)aggregate output decreased and the price level increased.
E)aggregate output increased and the price level decreased.

Question

Quizplus · Accepted Answer

Constant-dollar national income refers to the value of goods and services produced in an economy adjusted for inflation. Therefore, a decrease in constant-dollar national income implies that aggregate output decreased. The other options (A, B, D, and E) do not necessarily follow from the given information.

If Constant-Dollar National Income Decreased by $6 Billion Over a One-Year