Other things being equal, as the price level falls exogenously, the aggregate expenditure (AE)function shifts
A)down and the economy will move downward along the AD curve.
B)upward and the economy moves downward along the AD curve.
C)to the left, as does the AD curve.
D)down and the economy will move upward along the AD curve.
E)upward and the economy moves upward along the AD curve.

Question

Quizplus · Accepted Answer

The Answer of Other things being equal, as the price level falls exogenously, the aggregate expenditure (AE)function shifts
A)down and the economy will move downward along the AD curve.
B)upward and the economy moves downward along the AD curve.
C)to the left, as does the AD curve.
D)down and the economy will move upward along the AD curve.
E)upward and the economy moves upward along the AD curve.

Other Things Being Equal, as the Price Level Falls Exogenously