What is the effect of an increase in the price level? The real value of dollar-denominated...
What is the effect of an increase in the price level?
- The real value of dollar-denominated assets will rise.
- The aggregate expenditure line will shift upward.
- The equilibrium level of output demanded will rise.
- There will be upward movement along a particular aggregate demand curve.
- The aggregate demand curve will shift rightward.
Homework Answers
Ans is D
an increase in price level will decrease the quantity demanded and there will be movement along the linear demand curve. Upward movement means an increase in price and decrease in quantity demanded
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What is the effect of an increase in
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