What Is the Result of a Decrease in the Price

question 39

Multiple Choice

What is the result of a decrease in the price level?

• A) This will shift the aggregate demand curve to the left.
• B) This will shift the aggregate demand curve to the right.
• C) This will move the economy down along a stationary aggregate demand curve.
• D) This will move the economy up along a stationary aggregate demand curve.

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Definitions:

Tractors

Agricultural machinery used for plowing, tilling, planting, and other farming operations.

Bicycles

Human-powered, pedal-driven vehicles with two wheels attached to a frame, one behind the other, used for transportation, recreation, or sport.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption (the output).

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or taking an action.