Other things constant,a decrease in aggregate demand will lead to
A)a decrease in the demand for resources.
B)an increase in the demand for resources.
C)an increase in the general level of prices.
D)a reduction in the natural rate of unemployment.

Question

Quizplus · Accepted Answer

A decrease in aggregate demand leads to a decrease in the demand for resources because businesses will produce less due to lower demand for goods and services, thus requiring fewer resources.

Other Things Constant,a Decrease in Aggregate Demand Will Lead to