A decrease in the price level will
A)shift the aggregate demand curve to the right
B)shift the aggregate demand curve to the left
C)increase the level of aggregate quantity demanded
D)decrease the level of aggregate quantity demanded
E)have no effect at all on aggregate demand

Question

Quizplus · Accepted Answer

A decrease in the price level increases the purchasing power of money, leading to an increase in the aggregate quantity demanded, moving along the aggregate demand curve.

A Decrease in the Price Level Will