If the Price Level Decreases

question 13

Multiple Choice

If the price level decreases,

• A)the aggregate expenditures line shifts downward; the economy moves down along the aggregate demand curve
• B)the aggregate expenditures line shifts upward; the economy moves up along the aggregate demand curve
• C)the aggregate demand curve shifts to the right; the economy moves along the aggregate expenditures line
• D)the aggregate demand curve shifts to the left; the economy moves along the aggregate expenditures line
• E)the aggregate expenditures line shifts upward; the economy moves down along the aggregate demand curve

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Definitions:

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, providing the basis for double-entry bookkeeping.

Electric Bill

A monthly statement that quantifies and charges for electricity consumption.

Balance Sheet

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.

Total Assets

The sum of all assets owned by a company at a given time, including current, fixed, and intangible assets.