Suppose the Price Level Rises

question 99

Multiple Choice

Suppose the price level rises.How would this affect the aggregate expenditure line and the aggregate demand curve?  

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

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Definitions:

Goslings

Young geese; in a developmental context, the term often illustrates principles of imprinting and early learning.

Ducklings

Ducklings are the young of ducks; in psychology, they are often used in imprinting studies, which show how they can form attachments during a critical period early in life.

Blisspoint

The free operant level of two responses.

Set Point

A set point in physiological and psychological contexts refers to a theoretical value that the body or mind aims to maintain through various regulatory mechanisms, such as body temperature or weight.