How Does a Reduction in the Price Level Affect the Position

Multiple Choice

How does a reduction in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?

A) The C + I + G + X curve shifts down, thereby reducing the equilibrium level of real GDP.
B) The C + I + G + X curve shifts down, thereby increasing the equilibrium level of real GDP.
C) The C + I + G + X curve shifts up, thereby reducing the equilibrium level of real GDP.
D) The C + I + G + X curve shifts up, thereby increasing the equilibrium level of real GDP.