A decrease in the price level shifts the               curve to the right, and the aggregate demand curve .

Related MCQs

• If the short-run IS–LM equilibrium occurs at a level of income below the natural level of output, then in the long run the price level will , shifting the curve to the right and returning output to the natural level.
• Which factor would shift the Aggregate Demand curve to the right?
• An increase in aggregate demand (given no change in aggregate supply) will cause                            inflation.
• If Aggregate Demand exceeds Aggregate Supply, unwanted inventories will begin to accumulate, forcing firms to                           prices to get rid of those inventories.
• Which of the following is not a component of Aggregate Demand?
• Which of the following events will shift the Aggregate Supply curve to the left?
• The short-run Aggregate Supply curve is upward sloping only because we assume that resource costs are held .
• In the quantity theory of money, P and Y represent the price and quantity of:
• The Phillips curve implied that there was a trade- off available to governments between:
• If inflation is 6% and you receive a 1% raise in your nominal wage, by how much did your real wage change?