A decrease in the price level in an economy 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)shift the aggregate expenditure line downward

Question

Quizplus · Accepted Answer

A decrease in the price level increases the purchasing power of consumers' money, leading to an increase in the quantity of goods and services demanded across the economy, which is represented as a movement along the aggregate demand curve, not a shift of the curve itself.

A Decrease in the Price Level in an Economy Will