Multiple Choice
Use the following diagram to answer the following questions.
-Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If households decrease spending, this would most likely:
A) shift aggregate demand from AD₁ to AD₂.
B) cause unemployment.
C) cause the equilibrium level of real GDP and the equilibrium price level to fall.
D) all of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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