A decrease in the price level in the United States will have what effect on the aggregate expenditure line?
A)Aggregate expenditure will shift downward.
B)Aggregate expenditure will become steeper.
C)Aggregate expenditure will shift upward.
D)Aggregate expenditure will not be affected by an increase in the price level in the United States.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of money, leading to higher consumption and investment, which shifts the aggregate expenditure line upward.

A Decrease in the Price Level in the United States