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When the AE Curve Shifts Upward Because the Price Level

Question 32

Multiple Choice

When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is


A) nothing because aggregate demand does respond to changes in the price level.
B) a movement downward along the aggregate demand curve.
C) a movement upward along the aggregate demand curve.
D) a shift rightward of the aggregate demand curve.
E) a shift leftward of the aggregate demand curve.

Correct Answer:

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