A fall in the price level will:
A)cause an upward movement upward along the aggregate demand curve.
B)cause a downward movement along the aggregate demand curve.
C)cause a leftward shift of the aggregate demand curve.
D)cause a rightward shift of the aggregate demand curve.
E)have no impact on the aggregate demand curve.

Question

Quizplus · Accepted Answer

A fall in the price level would increase the purchasing power of consumers, leading to an increase in aggregate demand. This would cause a downward movement along the aggregate demand curve, as shown by the movement from point A to point B in the graph below.

![image.png](attachment:image.png)

A Fall in the Price Level Will