The Effect of an Increase in the Price Level on the Aggregate-Demand

question 79

Multiple Choice

The effect of an increase in the price level on the aggregate-demand curve is represented by a

• A)shift to the right of the aggregate-demand curve.
• B)shift to the left of the aggregate-demand curve.
• C)movement to the left along a given aggregate-demand curve.
• D)movement to the right along a given aggregate-demand curve.

Analyze the effects of monetary policy decisions on the international value of the U.S. dollar and trade balance.

Understand the impact of Federal Reserve's actions on interest rates and investment spending.

Grasp the relationship between monetary policy actions and inflation.

Know the composition and functions of legal reserves.

---

Definitions:

Pair of Equations

Two equations that are solved together to find a common solution for their variables.

Verify

To confirm or validate the truth, accuracy, or authenticity of something.

Pair of Equations

Two mathematical statements that are set equal to each other and are solved together to find the values of unknown variables.

Litres

Definition: A metric unit of volume equal to 1 cubic decimeter (dm³), or 1,000 cubic centimeters (cm³).