Suppose the Price Level Decreases

question 145

Multiple Choice

Suppose the price level decreases.How will the aggregate expenditure line and the aggregate demand curve be affected?  

• A) The aggregate expenditure line will shift downward, and the economy will move down along the aggregate demand curve. 
• B) The aggregate expenditure line will shift upward, and the economy will move up along the aggregate demand curve. 
• C) The aggregate demand curve will shift to the left, and the economy will move along the aggregate expenditure line. 
• D) The aggregate expenditure line will shift upward, and the economy will move down along the aggregate demand curve.

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