When the AE Curve Shifts Upward Because the Price Level

question 13

Multiple Choice

When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is

• A) a shift rightward of the aggregate demand curve.
• B) a shift leftward of the aggregate demand curve.
• C) nothing because aggregate demand does respond to changes in the price level.
• D) a movement downward along the aggregate demand curve.
• E) a movement upward along the aggregate demand curve.

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Definitions:

Approximate Normal

Describes a distribution that is close to, but not exactly, a normal distribution.

Sample Size

Refers to the number of observations or elements chosen from a population for the purpose of statistical analysis.

Approximate Normal

Describes data or distributions that are nearly, but not perfectly, normally distributed, exhibiting characteristics close to that of a bell-shaped curve.

Mean

The sum of values in a data set divided by the number of values, representing the central point of the data set.