Can a Change in the Price Level Change Aggregate Demand

question 35

Multiple Choice

Can a change in the price level change aggregate demand?

• A) Yes, as the price level rises, aggregate demand falls.
• B) Yes, but only under the condition that the real balance effect is operational.
• C) No, only a change in a nonprice factor can change aggregate demand.
• D) No, a change in the price level can only change aggregate supply.
• E) none of the above

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Definitions:

Retailer-sponsored Cooperative

A group of retailers that collaborate to buy in bulk, thereby reducing costs and gaining marketing advantages.

Wholesale Facility

A location or establishment primarily engaged in selling goods in large quantities at reduced prices to retailers or other businesses, rather than to the general public.

Merchandising Programs

Strategies and practices that companies use to promote the sale of products in retail environments, which can include product placement, pricing strategies, and promotional activities.

Corporate Vertical Marketing System

A tightly integrated supply chain structure where a single company owns or controls each step of the production and distribution process.