A decrease in the price level will cause
A)an increase in the quantity of aggregate output supplied
B)a decrease in the quantity of aggregate output supplied
C)a leftward shift of the aggregate supply curve
D)a rightward shift of the aggregate supply curve
E)a leftward or rightward shift of the aggregate supply curve,depending on the reason for the price change

Question

Quizplus · Accepted Answer

According to the law of supply, as the price level decreases, firms are less willing to supply output, leading to a decrease in the quantity of aggregate output supplied.

A Decrease in the Price Level Will Cause