Generally, the price level variations impact the overall aggregate demand positively or negatively. In this context, discuss various effects of decrease in price level on consumption, investment and net exports. Give examples to support your answer.

Generally, the price level variations impact the overall aggregate demand positively or negatively. In this context, discuss various effects of decrease in price level on consumption, investment and net exports. Give examples to support your answer.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 18P

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