If the economy is in macroeconomic equilibrium with a vertical AS curve, and then aggregate demand decreases, we expect the AE function to shift to a
A)lower level and stay there.
B)higher level and stay there.
C)higher level but then return to its original position as the price level falls.
D)higher level, but then shift part of the way down to its original position as the price level falls.
E)lower level, but then return to its original position as the price level falls.

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The Answer of If the economy is in macroeconomic equilibrium with a vertical AS curve, and then aggregate demand decreases, we expect the AE function to shift to a
A)lower level and stay there.
B)higher level and stay there.
C)higher level but then return to its original position as the price level falls.
D)higher level, but then shift part of the way down to its original position as the price level falls.
E)lower level, but then return to its original position as the price level falls.

If the Economy Is in Macroeconomic Equilibrium with a Vertical