Author Question: The global economy enters a recession, thereby decreasing the level of U.S. exports. If the ... (Read 37 times)

dollx · **on:** Jun 29, 2018

The global economy enters a recession, thereby decreasing the level of U.S. exports. If the aggregate supply curve does not shift, then aggregate demand will ________, real GDP will ________, and the price level will ________.

A) increase; increase; remain the same
B) increase; remain the same; increase
C) decrease; increase; increase
D) decrease; decrease; decrease
E) remain the same; increase; increase

Question 2

When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is

A) a shift rightward of the aggregate demand curve.
B) a movement upward along the aggregate demand curve.
C) a shift leftward of the aggregate demand curve.
D) a movement downward along the aggregate demand curve.
E) nothing because aggregate demand does respond to changes in the price level.