Other things being equal, the lower planned real expenditures along an aggregate demand curve are, the
A) more the production possibilities cure shifts to the left.
B) lower the price level.
C) higher the price level.
D) lower the level of endowments.

Question

Quizplus · Accepted Answer

The aggregate demand curve illustrates the relationship between the overall price level and the total demand for goods and services in an economy. As the price level decreases, planned real expenditures increase, and vice versa. Thus, lower planned real expenditures are associated with a higher price level.

Other Things Being Equal, the Lower Planned Real Expenditures Along