The Price Level Falls If

question 88

Multiple Choice

The price level falls if

• A) aggregate demand increases more rapidly than aggregate supply.
• B) aggregate demand increases more slowly than aggregate supply.
• C) aggregate demand increases and aggregate supply does not change.
• D) neither aggregate demand nor aggregate supply change.

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Definitions:

Financial Institutions

Businesses that provide financial services, including banks, credit unions, and insurance companies.

Compounded Semi-Annually

Interest on an investment or loan calculated twice a year, adding each interest payment to the principal.

Principal

The original amount borrowed or invested.

Payments 13 to 24

Refers to the series of payments that are made from the thirteenth to the twenty-fourth installment in a sequence of payments.