Question

if the price level increases, then the aggregate expenditures schedule will shift down and the aggregate demand curve will shift to the left. select one: true false

Answer 1

False. If the price level increases, the aggregate expenditures schedule will shift upward and the aggregate demand curve will shift to the right.

Step-by-step explanation:

False. If the price level increases, the aggregate expenditures schedule will shift upward and the aggregate demand curve will shift to the right.

In economics, the aggregate expenditures schedule represents the relationship between the level of overall spending in the economy and the price level. An increase in the price level leads to a decrease in aggregate expenditures, causing the schedule to shift upward.

The aggregate demand curve, on the other hand, represents the relationship between the overall price level and the quantity of goods and services demanded in the economy. An increase in the price level leads to a movement along the aggregate demand curve, resulting in a decrease in the quantity of goods and services demanded.