Can a Change in the Price Level Change Aggregate Demand

question 112

Multiple Choice

Can a change in the price level change aggregate demand?

• A)Yes,as the price level rises,aggregate demand falls.
• B)Yes,but only under the condition that the real balance effect is operational.
• C)No,only a change in a factor other than the price level can change aggregate demand.
• D)No,a change in the price level can only change aggregate supply.
• E)none of the above

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Definitions:

Purchasing Department

The division within a business that is responsible for making all procurements or purchases necessary for the company's operations.

Production Department

A segment within a business that is responsible for the manufacturing or production of goods.

Mixing Department

A production area or unit within a manufacturing facility where ingredients or components are combined to produce a final or intermediate product.

Standard Costs

Predetermined costs to manufacture a single unit or a number of units of a product during a specific period under expected or normal conditions.