When the Price Level Falls

question 309

Multiple Choice

When the price level falls,

• A)the AS curve shifts rightward but the potential GDP line does not shift.
• B)there is a movement upward along the AS curve.
• C)the AS curve shifts leftward but the potential GDP line does not shift.
• D)there is a movement downward along the AS curve.
• E)both the potential GDP line and the AS curve shift leftward.

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