Can a Change in the Price Level Change Aggregate Demand

question 35

Multiple Choice

Can a change in the price level change aggregate demand?

• A) Yes, as the price level rises, aggregate demand falls.
• B) Yes, but only under the condition that the real balance effect is operational.
• C) No, only a change in a nonprice factor can change aggregate demand.
• D) No, a change in the price level can only change aggregate supply.
• E) none of the above

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