When the Price Level Falls

question 2

Multiple Choice

When the price level falls,

• A)there is a movement downward along the AS curve.
• B)both the potential GDP line and the AS curve shift leftward.
• C)there is a movement upward along the AS curve.
• D)the AS curve shifts rightward but the potential GDP line does not shift.
• E)the AS curve shifts leftward but the potential GDP line does not shift.

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Definitions:

UCC

Represents the Uniform Commercial Code, a complete collection of legislation that regulates every commercial transaction across the United States.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform international sales law.

Contracts for the Sale of Goods

Legal agreements pertaining to the transfer of ownership of tangible personal property from a seller to a buyer for payment.

Forum Non Conveniens

A doctrine allowing courts to dismiss a case when another court, or forum, is significantly more appropriate to hear the case.