Suppose the Price Level Falls

question 46

Multiple Choice

Suppose the price level falls. The result is that the:

• A) aggregate supply curve would shift to the right.
• B) aggregate supply curve would shift to the left.
• C) general price level would rise causing a movement up the aggregate demand curve.
• D) aggregate demand curve would slope downward because of the real balances effect.

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Definitions:

Business

Business encompasses the activities related to the production, distribution, and sale of goods and services with the aim of earning profits.

Big Data

Big Data refers to extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Volume

The quantity or amount of something, often used to describe the size, capacity, or mass of an object or the loudness of a sound.

Velocity

The speed of something in a given direction, often used in physics to describe motion but can extend to describe the pace of change in various contexts.