A Leftward Shift in Aggregate Demand Will Cause a Decrease

question 113

Multiple Choice

A leftward shift in aggregate demand will cause a decrease in both output and price level if aggregate supply is

• A)Upward-sloping to the right.
• B)Vertical.
• C)Downward-sloping to the right.

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Definitions:

Relative Magnitude

The perceived size or importance of one quantity in comparison to another.

Colored Part

This term is vague but could be referring to the iris, which is the colored part of the eye responsible for controlling the size of the pupil.

Pupil

The black circular opening in the iris of the eye, which regulates the amount of light that enters the eye.

Iris

The colored part of the eye surrounding the pupil, controlling the amount of light that enters the eye by adjusting the size of the pupil.