An increase in the price level will
a. increase the quantity of aggregate expenditure, shown as an upward movement along the existing aggregate expenditure curve
b. decrease the quantity of aggregate expenditure, shown as an upward movement along the existing aggregate expenditure curve
c. cause an upward shift in the aggregate expenditure curve
d. cause a downward shift in the aggregate expenditure curve
e. have no effect on the aggregate expenditure curve
D
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Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________
A) rises; increases B) does not change; does not change C) falls; increases D) rises; decreases E) falls; decreases
Hyperinflation usually starts when:
A. people start spending too much money. B. firms demand higher and higher prices for their goods. C. governments are forced to print money to finance their spending. D. fiscal deficits are small.