A Change in the Price Level, All Other Things Unchanged

question 91

Multiple Choice

A change in the price level, all other things unchanged, causes

• A) a movement along the aggregate demand curve.
• B) a shift of the aggregate demand curve.
• C) both a movement along the aggregate demand curve and a shift in the curve.
• D) no change in the value of assets held in the form of money.

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Definitions:

Break-Even Cost

The amount of revenue needed to cover the total fixed and variable costs of producing and selling a product, with no profit or loss.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Price Collusion

An illegal practice where competing companies agree on price levels rather than competing, harming consumer interests.

Price Fixing

An illegal practice where businesses agree on prices for their products or services, rather than letting competition in the marketplace determine them.