Which of These Is a Likely Impact of a Decrease

question 68

Multiple Choice

Which of these is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?

• A)An increase in the quantity of real GDP supplied
• B)A decrease in the quantity of real GDP supplied
• C)A leftward shift of the aggregate supply curve
• D)A rightward shift of the aggregate supply curve
• E)An increase in the slope of the aggregate supply curve

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Definitions:

Salaries

Regular payments made by employers to employees, usually monthly or bi-weekly, for their work or services.

Economic Theory

A set of principles and methodologies that explain and predict economic phenomena.

Market Rate

The average or standard amount of money paid for a particular job in the labor market.

CPI Rate

The Consumer Price Index (CPI) rate measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.