What is the result of a decrease in the price level?
A) This will shift the aggregate demand curve to the left.
B) This will shift the aggregate demand curve to the right.
C) This will move the economy down along a stationary aggregate demand curve.
D) This will move the economy up along a stationary aggregate demand curve.

Question

Quizplus · Accepted Answer

A decrease in the price level results in a movement down along a stationary aggregate demand curve, as it reflects a change in the quantity of goods and services demanded due to the lower price level, not a shift of the curve itself.

What Is the Result of a Decrease in the Price