When the Price Level Falls

question 173

Multiple Choice

When the price level falls

• A)aggregate demand shifts to the left.
• B)all prices of individual goods and services decrease.
• C)aggregate demand shifts to the right.
• D)aggregate quantity demanded increases.
• E)the interest rate will increasE.

---

Definitions:

Real GDP

An evaluation of the economic output's value, after accounting for changes in prices because of inflation or deflation, demonstrating the genuine amount of goods and services produced.

Well-Being

The state of being comfortable, healthy, or happy, often used to describe the quality of life for individuals and societies.

U.S. Residents

Individuals living in the United States, including citizens, permanent residents, and long-term visitors.

Legal Final Goods

Goods that have been produced, fully completed, taxed, and meet legal standards for sale to consumers.