The process in which a cycle of falling asset prices and falling prices of goods and services can increase the severity of an economic downturn is called:

One of the most obvious clues to the relative scarcity of a product is

A) the limited selection of colors. B) the quality of the product. C) the variations in available sizes. D) its current market price.

Based on the figure above, the aggregate demand curve will shift from AD0 to AD1 when

A) the Federal Reserve lowers the interest rate. B) government expenditure decreases. C) the price level falls. D) the price level rises. E) potential GDP increases.