Multiple Choice
If the price level decreases,
A) the aggregate expenditures line shifts downward; the economy moves down along the aggregate demand curve
B) the aggregate expenditures line shifts upward; the economy moves up along the aggregate demand curve
C) the aggregate demand curve shifts to the right; the economy moves along the aggregate expenditures line
D) the aggregate demand curve shifts to the left; the economy moves along the aggregate expenditures line
E) the aggregate expenditures line shifts upward; the economy moves down along the aggregate demand curve
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Which of the following is not true
Q9: The simple multiplier<br>A)when divided by consumption spending
Q10: If the mps is 0.25,the simple multiplier
Q11: If output exceeds planned aggregate spending,the result
Q12: What is the effect of an increase
Q14: If the marginal propensity to consume is
Q15: The slope of the aggregate expenditure line
Q17: If the price level increases,other things constant,consumption
Q18: The economy will expand if<br>A)leakages exceed injections<br>B)injections
Q146: The smaller the marginal propensity to save,other