An Increase in the Price Level Shifts the AE Curve

question 39

Multiple Choice

An increase in the price level shifts the AE curve

• A) downward and does not shift the AD curve.
• B) downward and shifts the AD curve rightward.
• C) upward and shifts the AD curve rightward.
• D) downward and shifts the AD curve leftward.
• E) upward and shifts the AD curve leftward.

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Definitions:

Psychogenic

Originating from psychological factors rather than physical causes.

Paralysis

The loss of the ability to move (and sometimes to feel anything) in part or most of the body, typically as a result of illness, poison, or injury.

Irrational

Thinking or behavior that is not based on sound reasoning, logic, or factual evidence.

Cultural Difference

Variations in practices, beliefs, and values among people from different cultural backgrounds.