How is the effect of a decrease in the price level represented?
A) by a shift to the right of the aggregate-demand curve
B) by a shift to the left of the aggregate-demand curve
C) by a movement to the left along a given aggregate-demand curve
D) by a movement to the right along a given aggregate-demand curve

Question

Quizplus · Accepted Answer

A decrease in the price level results in an increase in the quantity of goods and services demanded, which is represented by a movement to the right along a given aggregate-demand curve. This is because, with lower prices, consumers' purchasing power increases, allowing them to buy more goods and services for the same amount of money.

How Is the Effect of a Decrease in the Price