How Will a Decrease in the Price Level Affect the Aggregate

question 143

Multiple Choice

How will a decrease in the price level affect the aggregate demand curve?  

• A) It will shift the aggregate demand curve to the right. 
• B) It will shift the aggregate demand curve to the left. 
• C) It will result in a movement upward along the aggregate demand curve. 
• D) It will result in a movement downward along the aggregate demand curve.

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Definitions:

Mobile Service

Telecommunication services provided through a network of base stations, enabling users to maintain communication without a fixed connection point.

Average Income

The mean income of a group, calculated by dividing the total income of the group by the number of individuals or entities in that group.

Total Revenue

The total income a business receives from selling its goods or services, calculated by multiplying the price per unit by the number of units sold.

Demand Curve

A graphical representation showing the relationship between the quantity of a good that consumers are willing and able to purchase and its price.