A Decrease in the Price Level

question 108

Multiple Choice

A decrease in the price level

• A)increases aggregate expenditure and produces a movement down along the aggregate demand curve.
• B)increases aggregate expenditure and produces a rightward shift of the aggregate demand curve.
• C)increases aggregate expenditure and produces a leftward shift of the aggregate demand curve.
• D)has no effect on aggregate expenditure.
• E)increases aggregate expenditure, but has no effect on the aggregate demand curve.

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