The Relationship Between the Aggregate Demand Curve and the Aggregate

question 51

Multiple Choice

The relationship between the aggregate demand curve and the aggregate expenditures model is shown in the fact that:

• A)a decrease in the price level shifts the aggregate expenditures schedule downward and decreases real GDP.
• B)a decrease in the price level shifts the aggregate expenditures schedule upward and increases real GDP.
• C)an increase in the price level shifts the aggregate expenditures schedule upward and increases real GDP.
• D)an increase in the price level shifts the aggregate expenditures schedule downward and increases real GDP.

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Definitions:

Meniscus

A crescent-shaped cartilage found in certain joints, such as the knee, that acts as a cushion and stabilizes the joint.

Elbow

The joint connecting the forearm to the upper arm, allowing for the bending and extending of the arm.

Knee

A hinge joint that connects the thigh bone (femur) to the shin bone (tibia).

Shoulder

The region of the body where the upper arm bone (humerus), shoulder blade (scapula), and collarbone (clavicle) meet.