If a Fall in the Price Level Made People Feel

question 105

Multiple Choice

If a fall in the price level made people feel richer and initially increased aggregate expenditures by 20, the AD curve would:

• A)shift by more than 20.
• B)shift by less than 20.
• C)shift by exactly 20.
• D)not shift at all.

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Definitions:

Gear Lube

A lubricant specifically formulated for gearboxes and transmissions to protect against wear, reduce friction, and ensure smooth gear changes.

Axle Grease

A thick, viscous lubricant applied to the axles of vehicles to reduce friction and wear between moving parts.

Oscillating Bolster

A structural component on rail vehicles or trailers that supports the load and allows for pivoting or oscillation to accommodate uneven terrain.

High Rigidity

A characteristic of materials or structures that resist deformation under load, ensuring stability and durability.