What Is the Effect of an Increase in the Price

question 91

Multiple Choice

What is the effect of an increase in the price level?

• A)The real value of dollar-denominated assets will rise.
• B)The aggregate expenditure line will shift upward.
• C)The equilibrium level of output demanded will rise.
• D)There will be upward movement along a particular aggregate demand curve.
• E)The aggregate demand curve will shift rightward.

---

Definitions:

Garden Gnomes

Decorative statues often placed in gardens, depicting mythological creatures known as gnomes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping, indicating that demand decreases as price increases.

Plaster

A building material made of lime or gypsum, water, and sand, used for coating walls and ceilings.

Labor

The deployment of human manpower, both in physical form and intellectual capacity, for generating goods and services.