An increase in aggregate expenditures resulting from a decrease in the price level is equivalent to a
A)rightward shift of the aggregate demand curve.
B)leftward shift of the aggregate demand curve.
C)movement downward along a fixed aggregate demand curve.
D)decrease in aggregate supply.

Question

Quizplus · Accepted Answer

A decrease in the price level leads to a movement downward along the aggregate demand curve, as it reflects a higher quantity of goods and services demanded at lower prices, not a shift of the curve itself.

An Increase in Aggregate Expenditures Resulting from a Decrease in the Price