A Decrease in the Price Level Will

question 213

Multiple Choice

A decrease in the price level will

• A)shift the short-run aggregate supply curve to the left.
• B)shift the short-run aggregate supply curve to the right.
• C)move the economy up along a stationary short-run aggregate supply curve.
• D)move the economy down along a stationary short-run aggregate supply curve.

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed in a society.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, removing the effects of inflation to compare one period with another.

Real GDP

Inflation-adjusted GDP, which presents a truer picture of an economy's magnitude and growth patterns over time.

Intermediate Products

Goods used as inputs in the production of other goods, including raw materials, components, and subassemblies.