The global economy enters a recession, thereby decreasing the ...

[dollx]

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.

[xiaomengxian]

Answer to Question 1

D

Answer to Question 2

D

[dollx]

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