Multiple Choice
Suppose the price level decreases.How will the aggregate expenditure line and the aggregate demand curve be affected?
A) The aggregate expenditure line will shift downward, and the economy will move down along the aggregate demand curve.
B) The aggregate expenditure line will shift upward, and the economy will move up along the aggregate demand curve.
C) The aggregate demand curve will shift to the left, and the economy will move along the aggregate expenditure line.
D) The aggregate expenditure line will shift upward, and the economy will move down along the aggregate demand curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q137: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt=" -Refer to the
Q138: Consider the aggregate expenditure line.What do the
Q139: What is the definition of the simple
Q140: How will a rise in the price
Q141: Suppose the price level decreases.How will aggregate
Q142: The aggregate expenditure line, along with the
Q143: How will a decrease in the price
Q144: What is the term for that fraction
Q146: Other things constant, how would a larger
Q147: What is reflected by the aggregate demand