The Aggregate Demand Curve Illustrates That, as the Price Level

question 183

Multiple Choice

The aggregate demand curve illustrates that, as the price level rises

• A) the quantity of real GDP demanded increases.
• B) the quantity of real GDP demanded decreases.
• C) the AD curve shifts rightward.
• D) the AD curve shifts leftward.

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Definitions:

Trade Deficit

A scenario in which a nation's expenditure on imported goods and services surpasses its revenue from exports, leading to a net export of the home currency to international markets.

U.S. Dollars

The official currency of the United States, represented by the symbol $.

International Monetary Fund

An international organization that aims to foster global monetary cooperation, secure financial stability, and facilitate international trade.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.