Author Question: A fall in the price level will: a. cause an upward movement upward along the aggregate demand ... (Read 67 times)

Jramos095 · **on:** Jun 30, 2018

A fall in the price level will:
a. cause an upward movement upward along the aggregate demand curve.
b. cause a downward movement along the aggregate demand curve.
c. cause a leftward shift of the aggregate demand curve.
d. cause a rightward shift of the aggregate demand curve.
e. have no impact on the aggregate demand curve.

Question 2

Suppose that R. J. Reynolds raises the price of cigarettes by 10 percent. Although they have no requirement or agreement to do so, the other cigarette firms decide to raise their prices accordingly. This situation is best described as:
a. price leadership.
b. a cartel.
c. monopolistic competition.
d. a market with kinked demand.