A Decrease in the Price Level Will

question 119

Multiple Choice

A decrease in the price level will

• A)shift the aggregate demand curve to the left.
• B)shift the aggregate demand curve to the right.
• C)move the economy up along a stationary aggregate demand curve.
• D)move the economy down along a stationary aggregate demand curve.
• E)have no impact on the economy.

---

Definitions:

Marginal Rate of Substitution

The rate at which a consumer can substitute one good for another while maintaining the same level of utility.

Rational Consumers

Individuals who seek to maximize their utility or satisfaction from the consumption of goods and services, making decisions based on available information and rational criteria.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, illustrating varying combinations of two products that give equal satisfaction and utility.

Hamburgers

A widely enjoyed dish made of a grilled or fried patty usually made from ground beef, served within a cut-open bread roll or bun.