When the AE Curve Shifts Upward Because the Price Level

question 49

Multiple Choice

When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is

• A)nothing because aggregate demand does respond to changes in the price level.
• B)a movement downward along the aggregate demand curve.
• C)a movement upward along the aggregate demand curve.
• D)a shift rightward of the aggregate demand curve.
• E)a shift leftward of the aggregate demand curve.

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Definitions:

Foucault

Michel Foucault was a French philosopher and social theorist known for his work on power relations, social institutions, and the history of sexuality.

Power

The ability or capacity to influence or control the behavior of others, often associated with authority, wealth, or force.

Discourse

Ways of discussing, writing, or thinking about a subject, which shape and reflect collective understanding and social norms.

Discipline

A field of study or branch of knowledge; also refers to the practice of training to obey rules or a code of behavior.