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When the Price Level Falls

Question 309

Multiple Choice

When the price level falls,


A) the AS curve shifts rightward but the potential GDP line does not shift.
B) there is a movement upward along the AS curve.
C) the AS curve shifts leftward but the potential GDP line does not shift.
D) there is a movement downward along the AS curve.
E) both the potential GDP line and the AS curve shift leftward.

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