When the Price Level Falls

question 309

Multiple Choice

When the price level falls,

• A)the AS curve shifts rightward but the potential GDP line does not shift.
• B)there is a movement upward along the AS curve.
• C)the AS curve shifts leftward but the potential GDP line does not shift.
• D)there is a movement downward along the AS curve.
• E)both the potential GDP line and the AS curve shift leftward.

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Definitions:

Passive Investor

An individual or entity that invests in stocks, bonds, or other investments without taking an active role in the management or their investment decisions.

Obligations

Duties or responsibilities imposed by law, contract, or moral duty.

Corporation

A legal entity formed under state law that is separate from its owners, providing limited liability and the ability to raise capital through the issuance of shares.

Organizer

A person responsible for planning and conducting events or activities, often involving logistical coordination and management.