If Aggregate Demand Shifts to the Left by $400 Billion

question 105

Multiple Choice

If aggregate demand shifts to the left by $400 billion and aggregate supply is upward-sloping,then real output will decrease by

• A)$400 billion,and the price level will not change.
• B)Less than $400 billion,and the price level will fall.
• C)$400 billion,and the price level will fall.
• D)More than $400 billion,and the price level will not change.

---

Definitions:

Prior to Purchase

The period or activities that occur before a consumer decides to buy a product or service.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Interpret

To explain or provide the meaning of something, particularly in the context of data or textual analysis.

Popularity Filters

Algorithms or criteria used on digital platforms to sort and present content based on its popularity, views, likes, or shares among users.