A decrease in the price level will result in:
A)a downward shift of the AD curve.
B)an upward shift of the AD curve.
C)a movement up the AD curve.
D)a steeper slope of the AD curve.
E)a movement down the AD curve

Question

Quizplus · Accepted Answer

A decrease in the price level will lead to an increase in the quantity of goods and services demanded due to lower prices. This will cause a movement down the AD curve, as lower prices will increase the real value of money, leading to increased spending and output.

A Decrease in the Price Level Will Result In