A decrease in the price level in an economy will _____
a. shift the aggregate expenditure line upward
b. shift the aggregate expenditure line downward
c. cause an upward movement along the aggregate expenditure line
d. cause a downward movement along the aggregate expenditure line
e. shift the aggregate demand curve leftward
a
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Which of the following central bank policies will raise the money supply?
a. Raising the reserve ratio. b. Buying government securities. c. Selling foreign currency in the foreign exchange market. d. Raising the discount rate. e. All of the above.
In general economic environments that correspond to lower levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. higher on the expenditure diagram. B. lower on the expenditure diagram. C. at multiple points on the diagram. D. equivalent at point in the diagram.