The aggregate demand curve: 0 A. shows the level of real GDP produced in the economy at different possible price levels during a period of time. Q B. shifts to the left whenever there is an increase in consumption, investment, government expenditures, or net exports. O C. is steeper at higher levels of output. x (Q D. slopes upward. Q E. shows the level of real GDP purchased in the economy at different possible price levels during a period of time. Which of the following will cause a decrease in aggregate supply? 0 A. Diminished household expectations about future income 0 B. Adecrease in wages O c. Adecrease in interest rates 0 D. Legislation limiting the workweek to 38 hours X G) E. All of these will decrease aggregate supply. x Incorrect According to the interest rate effect, as the price level: 0 A. rises, people feel poorer and buy less. X (9 B. rises, interest rates fall, and people buy less. 0 C. falls, interest rates fall, and people buy less. 0 D. rises, interest rates rise, and people buy less. 0 E. rises, United States products become more expensive, and foreigners buy fewer U.S. goods. X Incorrect