Asked by Natalee Hines on May 07, 2024
Verified
A decrease in the price level in an economy will _____.
A) increase the real value of dollar-denominated assets
B) shift the aggregate expenditure line downward
C) decrease the equilibrium level of output demanded
D) cause an upward movement along the aggregate demand curve
E) shift the aggregate demand curve leftward
Real Value
The value of an asset, product, or service, adjusted for inflation, reflecting its purchasing power and true cost over time.
Dollar-Denominated Assets
Financial assets such as stocks, bonds, or real estate investments that are valued in U.S. dollars.
- Comprehend how variations in the price level impact aggregate demand, aggregate supply, and aggregate expenditure.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
A
Explanation :
A decrease in the price level increases the purchasing power of the currency, leading to an increase in the real value of dollar-denominated assets.
Learning Objectives
- Comprehend how variations in the price level impact aggregate demand, aggregate supply, and aggregate expenditure.