Day: April 20, 2019

How would a fall in the price level be shown on an aggregate demand (AD) diagram?

Select ONE answer:

1. A movement down the AD curve
2. A movement up the AD curve
3. A shift to the left of the AD curve
4. A shift to the right of the AD curve

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

1. Correct: demonstrates the correct relationship.
2. Would be caused by a rise in the price level.
3. Would be caused by a change in components of aggregate demand.
4. Would be caused by a change in components of aggregate demand.

 

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