When the Price Level Is Below the Level at Which

question 177

Multiple Choice

When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply curve

• A) there will be no price level change.
• B) there will be pressures that will lead to a shift of either the aggregate demand or the long run aggregate supply curves.
• C) actual real GDP would be less than total planned real expenditures, and the price level will rise.
• D) actual real GDP would exceed total planned real expenditures, and the price level will fall.

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