Multiple Choice
Because decreases in the price level increase planned aggregate expenditure and short-run equilibrium output,
A) the short-run aggregate supply line is horizontal.
B) the short-run aggregate supply line is upward-sloping.
C) the aggregate demand curve is horizontal.
D) the aggregate demand curve is downward-sloping.
E) the aggregate demand curve is upward-sloping.
Correct Answer:

Verified
Correct Answer:
Verified
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