Which of the following events will not cause a decrease in the aggregate price level?
A) A decrease in markup.
B) A decrease in output.
C) A decrease in unemployment benefits.
D) A decrease in unemployment.
E) A decrease in expected prices.

Question

Quizplus · Accepted Answer

A decrease in unemployment typically leads to an increase in consumer spending due to more people having jobs and earning wages, which can lead to higher demand for goods and services. This increased demand can push prices up, not down.

Which of the Following Events Will Not Cause a Decrease