An increase in the price level ________ the aggregate quantity ...

[mynx]

An increase in the price level ________ the aggregate quantity supplied and ________ the aggregate quantity demanded.
 
  A) increases; decreases
  B) does not change; decreases
  C) decreases; increases
  D) decreases; decreases
  E) increases; increases

Question 2

An insight into business cycles is gained by the fact that
 
  A) changes in real GDP result in changes in autonomous expenditures.
  B) at a peak, a decrease in autonomous expenditure leads to a decrease in induced expenditure.
  C) autonomous expenditure does not change at either a peak or a trough.
  D) at a peak, autonomous expenditure increases, thereby leading to a recession.
  E) at a trough, induced expenditure decreases, thereby leading to an expansion.

[zogaridan]

Answer to Question 1

A

Answer to Question 2

B