Question
What is one result of a decrease in aggregate demand?
Multiple choice question.
Recession
Potential output is less than actual output
Higher expected returns on investment
Full employment
Multiple choice question.
Recession
Potential output is less than actual output
Higher expected returns on investment
Full employment
Answers
GPT-4o mini
The correct answer is:
**Recession**
A decrease in aggregate demand can lead to a recession because it typically results in reduced economic activity, lower output, and higher unemployment.
**Recession**
A decrease in aggregate demand can lead to a recession because it typically results in reduced economic activity, lower output, and higher unemployment.