A decrease in the price level will have which of the following effects?
A)The real value of dollar-denominated assets will fall.
B)The aggregate expenditure line will shift downward.
C)The equilibrium level of output demanded will fall.
D)There will be downward movement along a particular aggregate demand curve.
E)The aggregate demand curve will shift leftward.

Question

Quizplus · Accepted Answer

A decrease in the price level leads to a downward movement along the aggregate demand curve, as lower prices increase the quantity of goods and services demanded.

A Decrease in the Price Level Will Have Which of the Following