When an Aggregate Demand Curve Is Drawn with Real GDP

question 48

Multiple Choice

When an aggregate demand curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, if the money supply is decreased, then the aggregate demand curve will shift:

• A) downward and to the left.
• B) downward and to the right.
• C) upward and to the left.
• D) upward and to the right.

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Definitions:

Coattails

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A political and social philosophy promoting traditional values, the status quo, and resistance to rapid change.

Antislavery Liberty

Philosophical or political movement aimed at the abolition of slavery and the emancipation of enslaved people.

Free Soilers

A political movement in the United States pre-Civil War that opposed the expansion of slavery into the Western territories, advocating for free land for free men.