One result of an unanticipated reduction in aggregate demand would be that
A) fewer firms would be hiring.
B) more firms would be hiring.
C) there would be no change in hiring.
D) the price level would rise.

Question

Quizplus · Accepted Answer

If aggregate demand decreases, it means there is a decrease in the demand for goods and services in the economy. This will result in decreased sales for businesses and they will likely reduce their production. Consequently, firms will not need as many workers as before, leading to lower employment rates and fewer firms hiring.

One Result of an Unanticipated Reduction in Aggregate Demand Would