Question: A rise in the general price level causes a decrease in aggregate expenditure and: 1a rightward shift in the aggregate demand curve. 2a leftward shift

A rise in the general price level causes a decrease in aggregate expenditure and:

1a rightward shift in the aggregate demand curve.

2a leftward shift in the aggregate demand curve.

3a movement up to the left along a fixed aggregate demand curve.

4a corresponding increase in the aggregate supply curve.

which one is right?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

In the short run, an increase in the price level causes which of the following a. A rightward shift in the aggregate demand curve. b. A leftward shift in the short-run aggregate supply curve. c. A...

Q:

Assume a nation is operating on its production possibilities frontier which consists of producing a mix of defense and non-defense goods and services. If resources are deployed to produce more...

Q:

A supply shock, such as the development of a new technology, production costs and shifts the short run aggregate supply curve Negative; lowers; rightward Negative, raises, leftward Positive; lowers;...

Q:

Question 17 If an increase in government spending in the short run raises incomes, shifts money demand to the right, raises the interest rate, and lowers investment, it is called: the multiplier...

Q:

MACROECONOMICS (MULTIPLE CHOICE) d) Which of the following statements is incorrect? (1%) Keynesian economists suggest that time lags and the multiplier effect may give rise to business cycles....

Q:

1 Which of the following statements regarding fiscal policy is true? the multiplier effect increases the magnitude of the impact of a change in government spending the higher the value of the...

Q:

MACROECONOMICS (MULTIPLE CHOICE QUESTIONS) d) Which of the following statements is incorrect? (1%) Keynesian economists suggest that time lags and the multiplier effect may give rise to business...

Q:

3.03 Question 1 An increase in the price level corresponds to Aa decrease in aggregate demand Ban increase in aggregate supply Cmovement along the aggregate supply curve Dan inflationary gap Ea...

Q:

Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run? a.Aggregate demand will rise, the equilibrium price level will rise, and the...

Q:

24) During a recession, spending on ________ tends to fall more dramatically than spending on ________. A) nondurable goods; durable goods B) food; cars C) necessities; luxuries D) durable goods;...

Q:

xyz company manufactures its product out of 5 different plants in the united states. each plant manufacturers the same exact product. after manufacturing the product, it is shipped to their...

Q:

Light rods AB and BC support a 500-N load. End A of rod AB is pinned, whereas end C is on a Roller. A spring having a spring constant of 1,250 N/m is connected to A and C. The spring is unstretched...

Q:

The file FastFood contains the amount that a sample of 15 customers spent for spent on condiments ($) while attending a movie at the local theatre. 6.42 5.28 4.8 5.49 7.34 8.41 8.20 7.82 4.95 4.80...

Q:

Use Excel Solver to find the best scenario. 3 . 3 Stocking Warehouses: The Nicklaus Razor Blade Company plans to test market a new blade next month. The blades will be stocked in their three...

Q:

What problems develop when the head of HR reports to any executive other than the chief executive officer?

Q:

What is the fundamental difference between a line activity and a staff activity? Provide two examples of each in a health care setting.

Q:

Why do experts contend that a primary characteristic of line personnel is present within a clearly defined staff activity such as HR or Finance?