When the Price Level Increases, Aggregate Planned Expenditure ________ and Equilibrium

question 255

Multiple Choice

When the price level increases, aggregate planned expenditure ________ and equilibrium real GDP ________. As a result, in the AS-AD model, the aggregate demand curve has a ________ slope.

• A) increases; increases; positive
• B) decreases; decreases; negative
• C) decreases; decreases; positive
• D) increases; decreases; negative
• E) decreases; increases; negative

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Definitions:

Embryonic Skeleton

The initial cartilaginous and fibrous structure that will develop into the bony skeleton of an organism during its embryonic phase.

Cartilage

A flexible, rubbery connective tissue found in various parts of the body, providing structure and reducing friction between bones.

Synovial Joint

Capsule-enclosed joint at which cartilage-covered ends of bones are separated by a fluid-filled space.

Muscle Fiber

The cylindrical, multinucleate cells that make up skeletal muscles, responsible for contracting to produce movement.