The Aggregate-Demand Curve Shows That a Decrease in the Price

question 25

Multiple Choice

The aggregate-demand curve shows that a decrease in the price level

• A)decreases the dollar value of goods and services demanded in the economy.
• B)decreases the real value of goods and services demanded in the economy.
• C)increases the dollar value of goods and services demanded in the economy.
• D)increases the real value of goods and services demanded in the economy.

---

Definitions:

Expected Profit Rate

The forecasted return on an investment, calculated based on potential outcomes and their probabilities.

Net Inventory Investment

The change in the total value of inventories in an economy during a specific period.

Positive

An attribute or condition that reflects an increase, improvement, or favorable outcome.

Gross Investment

The total amount of capital invested in a firm, including replacements for depreciation and new investments for expansion.