Which of the following will most likely accompany an unanticipated reduction in aggregate demand?
A) an increase in the general price level
B) an increase in unemployment
C) an increase in real GDP
D) an increase in resource prices

Question

Quizplus · Accepted Answer

A reduction in aggregate demand would lead to a decrease in the overall demand for goods and services, which could lead to a decrease in production and employment. Therefore, an increase in unemployment is the most likely scenario. The other options are less likely because a reduction in aggregate demand would generally decrease the general price level and real GDP, and may not necessarily lead to an increase in resource prices.

Which of the Following Will Most Likely Accompany an Unanticipated