A decrease in the price level will have which of the following effects?
A)The real value of dollar-denominated assets will fall.
B)The aggregate expenditure line will shift downward.
C)The equilibrium level of output demanded will rise.
D)There will be upward movement along a particular aggregate demand curve.
E)The aggregate demand curve will shift leftward.

Question

Quizplus · Accepted Answer

A decrease in the price level will lead to increased purchasing power for consumers, which will lead to an increase in demand for goods and services. This will result in an increase in the equilibrium level of output demanded.

A Decrease in the Price Level Will Have Which of the Following