A Fall in the Price Level

question 268

Multiple Choice

A fall in the price level

• A) shifts the aggregate expenditure curve upward and increases the quantity of real GDP demanded.
• B) shifts the aggregate demand curve rightward and increases equilibrium GDP.
• C) decreases aggregate planned expenditures and shifts the aggregate demand curve leftward.
• D) shifts both the aggregate expenditures curve and aggregate demand curve upward.

---

Definitions:

Required Return

The minimum rate of return on an investment that is necessary for it to be considered a viable option.

Share Price

The current market price of a company’s stock, reflecting what investors are willing to pay for a share at a given time.

Expected Return

The mean of all the likely returns of securities or portfolios over a set period.

Growth Rate

The rate at which a company's earnings, revenue, or other financial metrics increase on a year-on-year basis expressed as a percentage.