If the Aggregate Demand Curve Shifts to the Left and the Aggregate

question 97

Multiple Choice

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right, the result will be a

• A)decrease in the level of output.
• B)decrease in the price level.
• C)higher price level.
• D)higher unemployment rate.

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Definitions:

Ethanol

A renewable fuel made from various plant materials, which can be used as an alternative to gasoline.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Bushels

A measure of volume commonly used in agriculture, especially in the United States, for quantifying crops like grains, fruits, and vegetables.