In Deriving the Aggregate Demand Curve from the Aggregate Expenditures

question 203

Multiple Choice

In deriving the aggregate demand curve from the aggregate expenditures model we note that:

• A)the wealth or real balances effect is irrelevant to both models.
• B)a change in the price level will have no impact on the aggregate expenditures schedule.
• C)an increase (decrease) in the price level shifts the aggregate expenditures schedule upward (downward).
• D)an increase (decrease) in the price level shifts the aggregate expenditures schedule downward (upward).

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