According to Baumol and Blinder, from the Demand Side a Decrease

question 170

Multiple Choice

According to Baumol and Blinder, from the demand side a decrease in the price level causes aggregate expenditures to

• A)fall, resulting in a lower level of equilibrium income.
• B)fall, resulting in a higher level of equilibrium income.
• C)rise, resulting in a higher level of equilibrium income.
• D)rise, resulting in a lower level of equilibrium income.

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Definitions:

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