Which of the following would most likely lead to a decrease in aggregate demand?
A. Increased government spending on public projects
B. A cut in income taxes for workers
C. A rise in unemployment that lowers consumer confidence
D. An increase in foreign investment

Question

Which of the following would most likely lead to a decrease in aggregate demand?
 A. Increased government spending on public projects
 B. A cut in income taxes for workers
 C. A rise in unemployment that lowers consumer confidence
 D. An increase in foreign investment

Sefton · Answer

The correct answer is C. When unemployment rises, people spend less because they have less income or fear losing their jobs. This reduces overall demand in the economy. During the COVID-19 lockdown in the Philippines, many workers lost jobs or income. As a result, people delayed purchases like phones or motorcycles, and aggregate demand dropped, slowing down economic activity.

Answered by Sefton | 2025-05-26

Which of the following would most likely lead to a decrease in aggregate demand? A. Increased government spending on public projects B. A cut in income taxes for workers C. A rise in unemployment that lowers consumer confidence D. An increase in foreign investment

Answer (1)

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Which of the following would most likely lead to a decrease in aggregate demand?
A. Increased government spending on public projects
B. A cut in income taxes for workers
C. A rise in unemployment that lowers consumer confidence
D. An increase in foreign investment

[Sagot para sa’yo] Sources of Information to Find Work

[Sagot para sa’yo] Give an example of a cultural symbol that represent Filipino identity. Explain why you consider it as a cultural symbo