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The Relationship Between the Aggregate Demand Curve and the Aggregate

Question 51

Multiple Choice

The relationship between the aggregate demand curve and the aggregate expenditures model is shown in the fact that:


A) a decrease in the price level shifts the aggregate expenditures schedule downward and decreases real GDP.
B) a decrease in the price level shifts the aggregate expenditures schedule upward and increases real GDP.
C) an increase in the price level shifts the aggregate expenditures schedule upward and increases real GDP.
D) an increase in the price level shifts the aggregate expenditures schedule downward and increases real GDP.

Correct Answer:

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