A Decrease in the Price Level Will

question 1

Multiple Choice

A decrease in the price level will

• A)shift the aggregate demand curve to the left.
• B)shift the aggregate demand curve to the right.
• C)move the economy up along a stationary aggregate demand curve.
• D)move the economy down along a stationary aggregate demand curve.

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Definitions:

Rate of Growth

The percentage growth in the magnitude or worth of an item during a particular timeframe.

Required Rate of Return

The lowest annual yield necessary to draw individuals or firms towards investing in a specific venture or financial proposition.

Cumulative Voting

A voting system that allows shareholders to allocate all their votes to one candidate or distribute them among several candidates when electing directors.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.