If the Price Level Increases, the AE Curve Shifts

question 11

Multiple Choice

If the price level increases, the AE curve shifts

• A) upward and the AD curve shifts leftward.
• B) downward and the AD curve shifts rightward.
• C) upward and there is a movement along the AD curve.
• D) downward and there is a movement along the AD curve.
• E) upward and the AD curve shifts rightward.

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Definitions:

Capitalism

An economic system where private owners control trade and industry instead of the state.

Inequality Theories

Theories that seek to explain the origins, evolution, and consequences of social, economic, and political inequalities within societies.

Egalitarian Social Structures

Societal organizations where members are considered equals, with minimal hierarchies and disparities in wealth and power.

Socialist Feminists

A branch of feminism that integrates the analysis of capitalism's role in the oppression of women with a commitment to socialism as a means to achieve both gender and economic equality.