A Fall in the Price Level

question 228

Multiple Choice

A fall in the price level

• A) decreases aggregate planned expenditures and shifts the aggregate demand curve leftward.
• B) shifts the aggregate expenditure curve upward and increases the quantity of real GDP demanded.
• C) shifts both the aggregate expenditures curve and aggregate demand curve upward.
• D) shifts the aggregate demand curve rightward and increases equilibrium GDP.

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Definitions:

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