When We Consider an Upward-Sloping Aggregate Supply Curve and a Downward-Sloping

question 1

Multiple Choice

When we consider an upward-sloping aggregate supply curve and a downward-sloping aggregate demand curve, a decrease in aggregate expenditures is reflected as a

• A) leftward shift in the aggregate supply curve, which increases the equilibrium price level and decreases equilibrium income.
• B) rightward shift in the aggregate supply curve, which increases both the equilibrium price level and equilibrium income.
• C) rightward shift in the aggregate demand curve, which increases both the equilibrium price level and equilibrium income.
• D) leftward shift in the aggregate demand curve, which decreases both the equilibrium price level and equilibrium income.
• E) leftward shift in the aggregate demand curve, which increases the equilibrium price level and decreases equilibrium income.

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Definitions:

Fees Earned

Revenue generated by a company through the provision of services.

Customer Invoices

Financial documents issued by a seller to a buyer, detailing the sale transaction and requesting payment.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Electronic Invoice Form

A digital version of a billing document sent by a supplier to a customer, detailing products or services sold and requesting payment.