Other things equal, in the income-expenditure model, a decrease in the price level will cause the planned aggregate expenditure curve to shift downward, resulting in a lower level of real GDP.

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In the income-expenditure model, a decrease in the price level increases consumers' real wealth, which can lead to an increase in consumption. This would cause the planned aggregate expenditure curve to shift upward, potentially resulting in a higher level of real GDP.

Other Things Equal, in the Income-Expenditure Model, a Decrease in the Price