Multiple Choice
When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is
A) a shift rightward of the aggregate demand curve.
B) a shift leftward of the aggregate demand curve.
C) nothing because aggregate demand does respond to changes in the price level.
D) a movement downward along the aggregate demand curve.
E) a movement upward along the aggregate demand curve.
Correct Answer:
Verified
Correct Answer:
Verified
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