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:

Broader Society

Pertains to the larger social system outside of smaller groups or communities, including cultural, economic, and structural dimensions.

Organizational Climate

Organizational climate represents shared perceptions of members regarding what the organization is like in terms of management policies and practices.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business.

External Adaptation

The process by which an organization or individual adjusts to changes in the external environment.