When the price level rises,planned aggregate expenditure decreases along the AD curve because of the

Name: When the price level rises,planned aggregate expenditure decreases along the AD curve because of the
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When the price level rises, the real value of money balances decreases, reducing consumption and investment (real-balances effect), and higher domestic prices make exports less competitive while imports become relatively cheaper, reducing net exports (foreign trade effect).

When the Price Level Rises,planned Aggregate Expenditure Decreases Along the AD