If the price level falls, the aggregate supply decreases as a result of the aggregate demand curve shifting left.

Name: If the price level falls, the aggregate supply decreases as a result of the aggregate demand curve shifting left.
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Quizplus · Accepted Answer

If the price level falls, it typically results in an increase in aggregate supply, as firms are willing and able to produce more goods and services at lower prices. This causes the aggregate supply curve to shift right, not the aggregate demand curve to shift left.

If the Price Level Falls, the Aggregate Supply Decreases as a Result