Which of the following is most likely to accompany an unanticipated reduction in aggregate demand?
A)an increase in the price level
B)a decrease in unemployment
C)an increase in real GDP
D)an increase in the unemployment rate

Question

Quizplus · Accepted Answer

An unanticipated reduction in aggregate demand will lead to a decrease in output and a decrease in price level. This will result in lower demand for goods and services, which will lead to a decrease in employment and an increase in the unemployment rate. Therefore, the correct answer is D, an increase in the unemployment rate.

Which of the Following Is Most Likely to Accompany an Unanticipated