A decline in U.S.wealth would tend to cause:
A) long-run aggregate supply to increase.
B) aggregate demand to decrease.
C) short-run aggregate supply to increase.
D) long-run aggregate supply to decrease.
E) aggregate demand to increase.

Question

Quizplus · Accepted Answer

A decline in U.S. wealth would cause a decrease in aggregate demand as households and businesses would have less purchasing power.

A Decline in U.S.wealth Would Tend to Cause