A reduction in the price level will cause the aggregate demand curve to shift to the left.

Name: A reduction in the price level will cause the aggregate demand curve to shift to the left.
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Question

Quizplus · Accepted Answer

A reduction in the price level will generally lead to an increase in aggregate demand, as consumers will have more purchasing power and therefore be able to buy more goods and services. As a result, the aggregate demand curve will shift to the right, not the left.

A Reduction in the Price Level Will Cause the Aggregate