How Will a Decrease in the Price Level Affect the Aggregate

question 5

Multiple Choice

How will a decrease in the price level affect the aggregate expenditure line?  

• A) It will shift the aggregate expenditure line upward. 
• B) It will shift the aggregate expenditure line downward. 
• C) It will cause a movement up along the aggregate expenditure line. 
• D) It will cause a movement down along the aggregate expenditure line.

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Definitions:

Primary Labour Market

describes sectors of the economy that offer high-paying jobs, secure employment, good working conditions, and benefits.

Supply And Demand

An economic model explaining price determination in a market based on the relationship between the quantity of a commodity available and the desire of buyers for it.

Democratic Socialist Government

A political system where socialism and democracy coexist, aiming to distribute wealth and resources more equitably while maintaining democratic freedoms.

Government Intervention

Actions taken by a government to influence or directly regulate various activities within its territory, often to achieve social or economic objectives.