When We Consider an Upward-Sloping Aggregate Supply Curve and a Downward-Sloping

Multiple Choice

When we consider an upward-sloping aggregate supply curve and a downward-sloping aggregate demand curve, a decrease in aggregate expenditures is reflected as a

A) leftward shift in the aggregate supply curve, which increases the equilibrium price level and decreases equilibrium income.
B) rightward shift in the aggregate supply curve, which increases both the equilibrium price level and equilibrium income.
C) rightward shift in the aggregate demand curve, which increases both the equilibrium price level and equilibrium income.
D) leftward shift in the aggregate demand curve, which decreases both the equilibrium price level and equilibrium income.
E) leftward shift in the aggregate demand curve, which increases the equilibrium price level and decreases equilibrium income.