Suppose that an economy begins in equilibrium. Assume that the economy follows the assumptions of the classical model. Due to the decrease in aggregate demand, the immediate effect is that the price level Blank 1 Question 1 increases and the real GDP Blank 2 Question 1 decreases . Now that the macroeconomy is in a disequilibrium, what happens in labour market? Unemployment Blank 3 Question 1 increases , causing wages to Blank 4 Question 1 decreases . As the wage rate Blank 5 Question 1 decreases the law of demand causes the quantity demanded of labour to Blank 6 Question 1 increase , while the law of supply Blank 7 Question 1 decreases the number of workers seeking jobs