If the Economy Were Initially in Equilibrium and the Aggregate

question 81

Multiple Choice

If the economy were initially in equilibrium and the aggregate demand curve shifted to the left,

• A)employment would fall
• B)the price level would rise
• C)the aggregate supply curve would shift rightward
• D)the aggregate supply curve would shift leftward
• E)the economy would experience an expansion period

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Definitions:

Deferral period

The time span during which payments or obligations are postponed or delayed.

Registered Retirement Savings Plan

A type of Canadian account for holding savings and investment assets, aimed at facilitating retirement savings.

End-of-month payments

Payments made at the conclusion of the month, often used in context with loans, rents, and utilities.

Compounded monthly

The process of adding interest to the principal sum of a loan or deposit, where this addition of interest occurs once every month.