A Decrease in the Price Level

question 52

Multiple Choice

A decrease in the price level

• A)increases aggregate expenditure and produces a movement along the aggregate demand curve.
• B)increases aggregate expenditure and produces a rightward shift of the aggregate demand curve.
• C)increases aggregate expenditure and produces a leftward shift of the aggregate demand curve.
• D)has no effect on aggregate expenditure.
• E)increases aggregate expenditure, but has no effect on the aggregate demand curve.

---

Definitions:

Insurance Proceeds

The payment received by an insured party from an insurance company in the event of a claim.

Lump Sum

A one-time transaction conducted at a specific moment, rather than multiple smaller payments or installments.

Ordinary Annuity

Consecutive settlements of equal value made at the end of each period over an established length of time.

Annuity Due

A financial product that pays out a series of payments at the beginning of each period, such as monthly or annually.