7. An increase in the price level results in a(n) because in the quantity of real GDP demanded A) decrease; a higher price level reduces consumption, investment, and net exports. B) increase; a higher price level reduces consumption, investment, and net exports. C) decrease; a higher price level increases consumption, investment, and net exports. D) increase; a higher price level increases consumption, investment, and net exports. 8. The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve? A) This will move the economy up along a stationary aggregate demand curve. B) This will move the economy down along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
7. An increase in the price level results in a(n) because in the quantity of real GDP demanded A) decrease; a higher price level reduces consumption, investment, and net exports. B) increase; a higher price level reduces consumption, investment, and net exports. C) decrease; a higher price level increases consumption, investment, and net exports. D) increase; a higher price level increases consumption, investment, and net exports. 8. The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve? A) This will move the economy up along a stationary aggregate demand curve. B) This will move the economy down along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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