Asked by Jared Myers on May 26, 2024

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A rise in the price level will:

A) cause an upward movement 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.

Price Level

A measure of the average prices of goods and services in an economy at a specific point in time.

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level in an economy and the total demand for goods and services at that price level.

  • Detail the repercussions of price level adjustments on the aggregate demand and overall economic output.
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RS
Reece SpilleMay 31, 2024
Final Answer :
A
Explanation :
A rise in the price level will cause an upward movement along the aggregate demand curve because as the price level increases, the quantity of goods and services demanded will decrease due to the decrease in real purchasing power. This results in a movement upward along the aggregate demand curve, which shows the relationship between the price level and the quantity of goods and services demanded.